Iran’s prolonged internet disruptions are shutting off a rare opening for young entrepreneurs to build low-cost businesses using artificial intelligence tools, according to a report by Shargh newspaper that warned the restrictions are crippling a generation of digital workers.
The disruptions have entered their 13th consecutive week, blocking or severely degrading access to many global online services that freelancers, software developers and content creators rely on to compete internationally, Shargh reported on Monday.
While AI tools have dramatically reduced the cost of launching new businesses worldwide, the report argued that internet restrictions inside Iran are preventing local entrepreneurs from benefiting from the shift.
“Internet that was supposed to become the launch platform for a new generation of entrepreneurs has now turned into the biggest obstacle to establishing, growing and developing a new business,” the newspaper wrote.
Many young Iranians who could previously build businesses with little more than a laptop and free AI software are now struggling to access even basic online services because of filtering, unstable connections and rising infrastructure costs, Shargh said.
The report estimated direct economic losses from the disruption at more than 3000 trillion rials, roughly $4 billion, over a 60-day period. Daily losses for internet-dependent businesses were estimated at between $30 million and $40 million.
Tiered internet deepens pressure
The emergence of “internet pro” or tiered internet access has widened inequalities inside Iran’s digital economy by giving certain users and organizations access to higher-quality connections at sharply higher prices, added Shargh.
Large-volume internet packages for preferred users are being sold for more than 20 million rials (around $12), the newspaper reported, adding that the model has significantly increased operating costs for small software teams already struggling with inflation and currency depreciation.
The minimum wage in Iran currently stands at just over $90 per month.
The report described the current environment as one where international internet access is increasingly treated as a luxury rather than a public utility.
It said software companies face two immediate problems: rising infrastructure costs and the collapse of traditional digital marketing channels such as Google advertising and search visibility.
Under those conditions, businesses earning foreign currency revenue or reducing dependence on international infrastructure have become more attractive, according to the report.
AI lowers barriers but access remains limited
Advances in AI during the past two years, the report said, have sharply reduced software production costs worldwide by automating repetitive development work such as coding assistance, testing, documentation and early-stage interface design.
Tools including GitHub Copilot and AI coding assistants have increased software production speed by up to 50%, according to the report.
But the newspaper said Iranian developers are increasingly unable to reliably access many of the same tools because of internet instability and restrictions.
Software teams, the report said, are increasingly shifting toward direct marketing methods such as SMS campaigns, webinars and messaging-platform advertising because conventional online advertising tools have become less effective under filtering conditions.
