Source: UNCTAD

AI is shifting from pilot projects to practical applications in investment promotion agencies, which face pressure to deliver faster, more targeted services and are deploying AI to automate tasks, identify investors and support decisions. Adoption is uneven: 82% of agencies reporting AI use are in high or upper‑middle‑income countries, while only 16% of users are in least developed countries and small island developing states; across 76 agencies reviewed in those economies, just 13% had visible AI tools, mainly chatbots for basic automation. The report identifies four core AI functions—operational automation, information synthesis, predictive decision‑making and generative AI—and positions operational automation (chatbots, automated workflows) as the most accessible entry point for agencies.

Concrete early results include an AI system in the Republic of Korea that identified companies likely to invest, with 38.5% of those companies investing between 2023 and 2025 versus a 17.7% baseline, and reported annual savings of over 1,000 staff hours. In the Democratic Republic of the Congo, an AI chatbot produced 30% more qualified contacts, 50% faster response times and a 20% higher conversion rate. The report recommends a phased approach—foundation, initialisation, scaling, maturity—starting with low‑risk tools (chatbots, generative content, CRM AI features), notes estimated annual tool costs from $300 to $6,000, and highlights constraints including data quality, skills gaps, maintenance needs, data protection and cybersecurity risks, and organisational resistance; it stresses the need for human oversight and incremental capacity building.