YBI-PolicyPaper-AI-NewsItem Graphic
YBI-PolicyPaper-AI-NewsItem Graphic

The AI Divide Is Growing: Why the Future of Youth Entrepreneurship Rests on a Knife Edge

By Dejan Markovic, Head of Innovation, Youth Business International (YBI)

Artificial intelligence offers enormous potential to level the playing field for young entrepreneurs — but without urgent action, it risks deepening inequality. Drawing on insights from Youth Business International’s policy paper, this article explores how business, policymakers, and support organisations can collaborate to close the AI divide and build a more inclusive future for entrepreneurship.

Artificial intelligence (AI) is reshaping the global economy at unprecedented speed. For young entrepreneurs, especially those in underserved or low-resource environments, this moment represents both a breakthrough opportunity and an urgent risk. With deliberate action, AI can become a powerful enabler of inclusive growth. Without it, the existing inequalities in entrepreneurship risk becoming further entrenched.

Youth Business International (YBI), the global leader in youth entrepreneurship, explores this challenge in its policy paper, Harnessing AI and Digital Solutions to Empower Young Entrepreneurs. The paper argues that the choices made today by businesses, policymakers, investors and support organisations will determine whether AI becomes a leveller or a divider for the next generation of entrepreneurs.

AI’s Transformative Potential — and the Risk of Exclusion

AI has the capacity to reduce barriers to entrepreneurship more dramatically than any technology in recent decades. Tasks that once required specialist staff — from content creation to data analysis — can now be automated or simplified using accessible AI tools. For a young entrepreneur with an idea and an internet connection, this can be game-changing.

But access to these benefits is far from equal. Even among digitally connected populations, AI literacy remains widely lacking. According to the World Economic Forum, 58% of students feel unprepared for an AI-enabled workplace, and nearly half report insufficient knowledge of AI.

These disparities are not only about connectivity or hardware. They reflect deeper systemic divides around skills, affordability, confidence, and inclusion — divides that determine who gets to participate in, and shape, the digital economy.

AI Skills: The New Frontier for Inclusive Entrepreneurship

The World Economic Forum’s Future of Jobs Report 2025 estimates that emerging technologies could create 170 million new jobs by 2025 while displacing 92 million. The entrepreneurs best equipped with AI literacy and digital capability will be positioned to adapt, innovate, and compete.

Recognising this, YBI developed the AI Accelerator Curriculum, a practical initiative that helps young entrepreneurs integrate low-cost, no-code AI tools into daily business operations. Rather than focusing on technical complexity, the programme blends AI literacy with hands-on system building, helping founders use AI for marketing, lead generation, customer engagement, and operational efficiency.

Crucially, the curriculum is designed for resource-constrained entrepreneurs who often lack reliable infrastructure, funding or technical support. By prioritising affordability, practical application, and inclusion, the Accelerator aims to transform young founders from passive observers of technological change into active innovators with the tools to grow their businesses.

Addressing the Gaps: Inclusion and Access

Despite rapid innovation, gaps in infrastructure, affordability, and training continue to hold many young entrepreneurs back, particularly those from rural areas, lower-income backgrounds, or underrepresented groups. These entrepreneurs often face unreliable connectivity, limited access to training, and uncertainty about how to apply AI safely and effectively.

To unlock the benefits of AI, business leaders and policymakers must consider not only technological access but also the enabling environment around it, including responsible data use, inclusive training, and long-term support systems.

What Policymakers and Investors Can Do

YBI’s policy paper outlines key actions that can help reduce the risk of exclusion and support underserved young entrepreneurs to participate fully in an AI-enabled economy. These include:

1. Expand affordable digital infrastructure
Public–private partnerships can help ensure reliable broadband access in rural and low-income regions, reducing cost barriers and supporting business continuity.

2. Embed inclusive AI education
Schools, TVET institutions, and entrepreneurship programmes should integrate AI literacy and ethical understanding, using local languages and accessible tools.

3. Provide targeted business support
Incubators, accelerators and enterprise networks can embed AI tools into their programmes and offer mentorship that bridges both business and technical expertise.

4. Develop SME-friendly AI regulation
Proportionate, risk-based governance can help small firms experiment safely without facing prohibitive compliance requirements.

5. Foster collaboration across borders and sectors
Regional hubs and youth-to-youth learning networks can accelerate knowledge sharing and help close the AI skills gap globally.

Each of these actions relies on collaboration and requires joint leadership from business, civil society, government and investors.

A Generation Ready to Lead

Around the world, young entrepreneurs are already proving that AI can be a catalyst for innovation, resilience and inclusive economic growth. By automating administrative tasks, expanding access to information, and increasing efficiency, AI gives young founders new pathways to scale and compete.

But the opportunity is not guaranteed. To ensure AI becomes a tool for empowerment rather than exclusion, decision-makers must act now to close the skills gap, build inclusive digital ecosystems, and invest in solutions that meet entrepreneurs where they are.

If we get this right, AI can help unlock a future in which every young entrepreneur — regardless of geography, background or income — has the tools and confidence to shape the economy of tomorrow.

Read YBI’s full policy paper, Harnessing AI and Digital Solutions to Empower Young Entrepreneurs, here.

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