·       The consulting firm is expected to produce a flagship report that contains AI solutions, best practices and provide recommendations on how to use AI to solve key development challenges that informal enterprises face including low productivity issues, weak access to technology, lack of market, insufficient financial services, and skill gaps.

·       The study focuses on key sectors where the informal economy dominates in ACP Countries and relevant AI applications in the following priority need areas.

o   Address Data Scarcity: Develop methods for overcoming data scarcity to inform policy-making and predictive analysis.

o   Enhance Access to Finance and Markets: Investigate AI-powered solutions for financial inclusion and market access.

o   Capacity Building, Training and Skills Development: Provide frameworks for technology transfer and skills development using AI.

o   Develop Ecosystems and Knowledge Exchange: Foster an ecosystem for innovation and facilitate knowledge exchange.

o   Scale up Formalization Efforts: Propose policy framework and strategies for scaling up formalization initiatives using AI.

·       The study should also cover potential challenges of AI regarding Ethical and Regulatory Practices such as issues of data privacy and security, appropriate relevant regulations, promoting non-discriminatory practices and supporting inclusive development and the required responses and safeguards.

·       Identify 10 case studies that highlight successful AI applications aligned with informal economy project intervention areas (i.e., improved policy and regulations, increased access to finance and markets, boosting productivity and market competitiveness, enhanced capacity and capabilities, greater ecosystem collaboration and knowledge and technology transfer).