The global economy is undergoing a profound transformation driven by artificial intelligence (AI), cloud computing, big data, cybersecurity and digital services. The digital economy is projected to reach nearly $28 trillion by 2026, highlighting its growing role as a key driver of global economic growth. While economic relations between Bangladesh and the United States have traditionally been dominated by the ready-made garments (RMG) sector, the next phase of bilateral engagement should focus on AI and the digital economy.
As Bangladesh prepares for LDC graduation and pursues its ambition of becoming a knowledge-based economy, collaboration with the United States in digital technologies offers a strategic opportunity to diversify trade, attract high-value investment and enhance productivity across industries.
Realising this potential also aligns with one of the Bangladesh government’s key development priorities: accelerating the country’s digital economy. By expanding the digital economy, the government aims to create quality employment opportunities for its young population, strengthen advanced digital skills and integrate Bangladesh more deeply into the global knowledge economy.
Achieving these objectives will require greater investment, technology transfer, innovation and international partnerships. In this context, stronger Bangladesh–United States business ties — particularly in artificial intelligence (AI), digital infrastructure, cloud computing, cybersecurity and the broader digital economy — can serve as a catalyst for this transformation.
The United States remains the world’s leading AI innovator. US companies such as Microsoft, Google, Amazon Web Services (AWS), NVIDIA, OpenAI, IBM, Oracle and Meta continue to dominate global AI research, cloud infrastructure and digital platforms. Bangladesh, on the other hand, possesses one of the youngest populations in Asia, a rapidly expanding ICT workforce and a growing startup ecosystem. These complementary strengths create significant opportunities for a strategic digital partnership.
Building on these complementary advantages, the United States can increasingly view Bangladesh not merely as a low-cost manufacturing destination, but as an emerging hub for digital services and innovation.
Bangladesh has already made considerable progress in expanding internet connectivity, digital financial services and e-government initiatives. The country’s growing software and IT-enabled services (ITES) sector is expanding rapidly, serving clients across North America, Europe and the Middle East.
With one of the youngest and increasingly IT-oriented workforces in Asia, Bangladesh possesses significant potential to become a reliable supplier of high-value digital services. With greater US investment, technology transfer and industry collaboration, Bangladeshi talent can deliver high-quality AI-enabled solutions, software development, business process outsourcing (BPO), technology-enabled customer support services and other digital services that are increasingly in demand by US companies.
The economic potential is also substantial. According to the World Bank, Bangladesh’s economy reached approximately $456 billion in GDP in 2025, making it one of South Asia’s fastest-growing economies despite recent macroeconomic challenges.
Moreover, AI is no longer confined to technology companies. It is transforming manufacturing, healthcare, education, agriculture, logistics, finance and public administration. For the United States, AI-enabled modernisation of Bangladesh’s garment industry — which accounts for the majority of Bangladesh’s exports to the US — can strengthen supply chain resilience through AI-powered quality control, predictive maintenance and supply chain optimisation.
Agriculture presents another promising area for collaboration. As Bangladesh faces growing population pressure and shrinking cultivable land, US investment in AI-driven precision agriculture and smart farming technologies could significantly improve productivity, strengthen food security and create new market opportunities for American agritech companies.
Taken together, these developments lay a strong foundation for expanding Bangladesh–US business partnerships in AI-enabled services, software development, cloud computing, cybersecurity and digital entrepreneurship.
The main capital of this collaboration should be US investment in Bangladesh’s digital infrastructure. Large-scale investments in cloud computing, cybersecurity, tech-enabled customer support services and digital payment ecosystems could strengthen Bangladesh’s digital competitiveness while creating thousands of skilled jobs.
Recent discussions between the US and Bangladesh have also highlighted cooperation in information and communications technology (ICT) equipment and technology-related investment as part of efforts to strengthen bilateral economic ties.
To attract and sustain such investment, Bangladesh must continue strengthening its domestic digital ecosystem. Reliable digital infrastructure, modern data governance, robust cybersecurity regulations, intellectual property protection and a politically and administratively hassle-free business environment are essential to building investor confidence. To further support this objective, the government should consider establishing a dedicated Digital Business Protection Unit, similar to the Industrial Police, to safeguard digital businesses, critical infrastructure and technology investments.
The key to sustaining this partnership, however, lies in human capital development. The successful adoption of AI requires a workforce equipped with advanced digital skills rather than only basic programming knowledge. Universities, technical institutes and private companies in both countries can collaborate on AI research, machine learning, data science, semiconductor design, robotics and cybersecurity. Joint research programs, university-to-university partnerships (UUPs), technology company-to-company partnerships (CCPs) and affordable, US-based industry-recognised online certification programs could help prepare Bangladeshi youth for the next generation of digital employment.
Looking ahead, Bangladesh–United States business relations should evolve from a trade relationship based primarily on garments toward a comprehensive digital partnership built on technology, innovation, investment and human capital. Such a transformation would reduce Bangladesh’s dependence on a single export sector while enabling American companies to access a competitive, young and increasingly digital workforce. In the age of Artificial Intelligence, the future of Bangladesh–US economic relations will depend not only on what Bangladesh manufactures, but increasingly on what Bangladesh can innovate, design, develop, and digitally deliver.
Md Farid Talukder, PhD is an Assistant Professor at McNeese State University, LA, USA.
[The views expressed in this article are the author’s own and do not necessarily reflect the position of The Daily Bonik Barta or the organisation they work for.]