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CommentaryTech

WEF Chair Klaus Schwab: It took just under 4 years to connect 1B people to vital digital services. We must redouble our efforts as the world enters the age of AI

By
Klaus Schwab
Klaus Schwab
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September 24, 2024, 11:00 AM ET
Klaus Schwab is the chairman and founder of the World Economic Forum.
Klaus Schwab is the chairman and founder of the World Economic Forum.
Klaus Schwab is the chairman and founder of the World Economic Forum.Thomas Koehler - Photothek - Getty Images

As the Fourth Industrial Revolution paves the way for greater technological integration, we stand on the brink of the Intelligent Age, an era defined by blending artificial intelligence (AI) and cutting-edge technologies into everyday life. Yet amid this sweeping transformation, we are confronted with a profound paradox: The same technologies that hold extraordinary promise for unprecedented growth, innovation, and human progress also risk deepening divides and exacerbating inequalities. For the Intelligent Age to truly deliver on its potential, we must urgently confront one of its most critical challenges: ensuring digital inclusion for all.

Since its inception in 2021, The EDISON Alliance, a World Economic Forum initiative together with 170 partners, has successfully connected over 1 billion people globally—ahead of its initial 2025 target—to essential digital services in healthcare, education, and finance in over 100 countries. This progress spans over 100 countries, with notable advancements in South Asia and Africa. This remarkable milestone is a testament to the positive impact that can be achieved through the power of public-private partnerships in addressing the global digital divide.

Despite this remarkable success, the global digital divide remains vast. Achieving universal internet access by 2030 is projected to cost $446 billion, according to the Tony Blair Institute. While this may seem like a high price tag, such an investment could deliver $8.7 trillion in benefits to developing countries. A return on investment exceeding 1,800% is a compelling opportunity that any investor should be eager to pursue.

The digital divide is a layered and complex challenge, cascading across economic, educational, social, and geographic lines. Today, some 2.6 billion people around the world—nearly one-third of the global population—remain unconnected to the internet, depriving them of access to essential services and opportunities. Digital exclusion contributes to broader issues: 4.5 billion people lack adequate healthcare; 1.4 billion do not have a bank account, and the number of children out of school continues to rise, now reaching 250 million globally.

The first pillar of addressing the digital divide is building reliable and resilient digital infrastructure. This is a vital investment not just for developing countries, but also in developed nations where significant disparities exist in access to high-speed internet. With the rise of artificial intelligence (AI) and other frontier technologies, the need for high-quality digital infrastructure will be more critical than ever to handle the massive data flows, real-time analytics, and seamless connectivity that AI technologies depend on.

However, access alone is not enough. While mobile broadband networks cover much of the world, many encounter barriers that prevent them from getting online. These obstacles include the high cost of devices and data plans, lack of digital literacy and skills, and absence of relevant local content.

Beyond infrastructure, digital literacy is a key challenge. While access to the internet is essential, knowing how to navigate and use digital tools is just as important. To address this, governments and organizations must invest in comprehensive digital education programmes that empower citizens with the knowledge and skills necessary for the safe, responsible, and productive use of digital services. This is especially important for older adults and underserved populations where the largest gaps persist.

In Norway, for example, the Digital Throughout Life programme emphasizes lifelong learning, equipping individuals with the skills to adapt to technological advances. Similarly, Singapore’s Digital Skills for Life and Seniors Go Digital frameworks build fundamental digital skills for people of all ages. India’s National Digital Literacy Mission programme focuses on bridging the digital divide by ensuring that every household has at least one person proficient in basic digital skills.

We must also break down the barriers that keep women from fully participating in the digital economy. Today, the mobile internet gender gap remains at 15%. To put this into perspective, one out of seven women is without the tools they need to participate in today’s digital economy. This gap is not just a social issue, it is an economic one. The Alliance for Affordable Internet estimates that over the last decade, low- and middle-income countries have lost $1 trillion in gross domestic product (GDP) to the gender gap in internet use due to the digital gender divide.

Moreover, affordability remains a formidable barrier. In some parts of Africa, the cost of a basic internet package can be as high as 20-30% of an average monthly income. Coupled with the high cost of devices, this effectively excludes many who would benefit most from digital opportunities for education, healthcare and financial services.

The 1 billion milestone is not just a number—it represents hundreds of millions of stories of new opportunities and lives that have been transformed. In Madhya Pradesh, India, the EDISON Alliance supported the creation of digital dispensaries, improving access to quality, affordable healthcare in remote areas. In Rwanda, the alliance facilitated access to credit and financial services for small and medium-sized enterprises (SMEs), helping local businesses to grow and thrive.

As we look to the future of the Intelligent Age, the rapidly evolving digital landscape threatens to widen the digital divide where marginalized communities and low-income countries risk being further excluded from the benefits and potential. To bridge this gap, we must prioritize strategic investments in underserved regions. Targeted policies must address the digital gender divide, as well as the specific needs of SMEs, which are the backbone of the global economy.

Empowering 1 billion lives digitally is an extraordinary achievement, but it is only the beginning. As we move forward, we must reaffirm our commitment to ensuring meaningful connectivity for all—regardless of where in the world they live or their socioeconomic background. This means not only expanding digital access, but also enhancing digital literacy and ensuring that the benefits of the digital revolution are shared equitably across all communities.

The EDISON Alliance has shown us what is possible when we come together with a shared purpose. Now, let us build on this momentum to create a digitally inclusive world where everyone has the opportunity to participate in the global digital economy and access the essential services that improve lives and drive progress.

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