Bangladesh Tech Sector Sees Surge in AI Adoption and Digital Payments

Bangladesh’s technology landscape is undergoing a significant transformation, driven by a surge in artificial intelligence (AI) adoption and the rapid expansion of digital payment systems. Industry experts and government officials report that these developments are positioning the country as a rising hub for innovation in South Asia.

According to the Bangladesh Association of Software and Information Services (BASIS), the country's IT sector grew by 18 percent in the past fiscal year, reaching an estimated export revenue of $1.5 billion. This growth is largely attributed to increased investment in AI-powered solutions for sectors such as healthcare, agriculture, and financial services. Local startups are leveraging AI to develop tools for crop disease detection, remote patient monitoring, and fraud prevention in banking.

One notable example is Dhaka-based startup AgroAI, which recently launched an app that uses machine learning to analyze soil data and provide personalized fertilizer recommendations to farmers. The app has already been downloaded by over 50,000 users in rural areas, helping to boost crop yields and reduce waste. Company CEO Saima Rahman said, "Our goal is to make precision agriculture accessible to smallholder farmers, who form the backbone of Bangladesh’s economy."

The digital payments ecosystem is also experiencing a boom. The central bank, Bangladesh Bank, reported that mobile financial services (MFS) transactions exceeded 4.5 billion taka (approximately $42 million) per day in October 2024, a 30 percent increase from the same period last year. This surge is fueled by the widespread use of platforms like bKash, Nagad, and Rocket, which are now accepted by over 90 percent of merchants in urban areas.

To further accelerate digital inclusion, the government launched the "Smart Bangladesh" initiative in September, aiming to digitize 80 percent of public services by 2026. As part of this effort, the National Identity Card system is being integrated with a digital wallet, allowing citizens to access healthcare, education, and social welfare benefits through a single platform. Information and Communication Technology Division Secretary Md. Shamsul Arefin stated, "We are building a foundation for a knowledge-based economy, where technology empowers every citizen."

On the international front, Bangladesh is attracting attention from global tech firms. In November, U.S.-based chipmaker Qualcomm announced a partnership with the Bangladesh University of Engineering and Technology (BUET) to establish a research lab focused on 5G and IoT applications. The lab will train students and faculty, and develop solutions for smart cities and disaster management. Similarly, Chinese e-commerce giant Alibaba has expanded its cloud services in Dhaka, offering local businesses access to AI and big data analytics tools.

However, challenges remain. Cybersecurity threats have increased, with the Bangladesh Computer Incident Response Team (BGD e-GOV CIRT) reporting a 40 percent rise in phishing attacks in 2024. To address this, the government has allocated 200 million taka for a new cybersecurity awareness campaign and is working with international partners to strengthen its digital infrastructure.

Despite these hurdles, industry leaders are optimistic. BASIS President Russell T. Ahmed said, "Bangladesh is at a turning point. With a young, tech-savvy population and supportive policies, we have the potential to become a major player in the global tech arena." As AI and digital payments continue to reshape the economy, the country is poised to harness technology for inclusive growth and sustainable development.