GSMA warns smartphone costs threaten global AI participation

The GSMA is calling for urgent action to make smartphones more affordable in low- and middle-income countries to ensure global participation in the artificial intelligence revolution. According to the organization’s State of Mobile Internet Connectivity Report 2026, a significant “usage gap” exists: while 4.8 billion people use mobile internet, 3.4 billion remain unconnected despite 90% of them living within mobile broadband coverage.

GSMA Director General Vivek Badrinath warned that the primary risk is not just an AI gap between nations, but a divide between those who can afford to participate in the digital economy and those who cannot. The report notes that the growth of the global digital population is slowing, with 160 million new users in 2025 compared to 190 million in 2024.

A major driver of this digital inequality is the rising cost of smartphone memory and chipsets. This price surge is fueled by global demand for AI infrastructure and data centers, which has caused memory prices to more than double between the third quarter of 2025 and the first quarter of 2026.