AI Can Accelerate Growth in Developing Countries – World Bank
World Bank Group says Artificial Intelligence (AI) could enable developing countries to achieve in a decade what might otherwise take a century if governments address critical infrastructure and skills gaps.
This is contained in a statement by the World Bank Media Briefing Centre on its World Development Report 2026: The Promise of Artificial Intelligence, released on Tuesday.
According to the report, governments need to close the gap in power, connectivity, skills and institutional quality that threaten to leave them behind.
It said that only 4.5 per cent of existing jobs in low- and middle-income countries were at risk of automation from generative AI, compared with 14.2 per cent in high-income countries.
The report, however, said 16.2 per cent of jobs in developing economies could experience significant productivity gains from AI, close to the 18.7 per cent projected for high-income countries.
It said the greatest potential for developing countries lay in using AI to enhance workers’ productivity rather than replace them.
The report quoted Indermit Gill, World Bank Group’s Senior Vice-President and Chief Economist as saying that AI had thrown developing economies a lifeline, and they should seize it.
“They do not need large models or big data centres to reap its benefits.
“By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions.
“They must, however, hurry because AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet,” he said.
The report said AI was already helping governments, businesses and individuals analyse information, improve forecasts, solve problems and deliver services at a larger scale.
According to the report, AI can assist doctors in diagnosing patients, support farmers in making better crop decisions, improve business productivity and strengthen government services, including tax collection, social programmes, disaster response, healthcare and education.
It said that developing economies were currently experiencing their weakest average growth performance in three decades.
It expressed optimism that AI could significantly improve economic performance before the end of the 2020s while delivering tangible benefits to people.
The report said that the benefits of AI were not guaranteed, noting that many developing countries still lacked reliable electricity, internet access, computing power, quality data, skilled manpower and strong institutions.
“Without deliberate action, AI could widen gaps between countries, increase inequality within them, concentrate market power, weaken trust in public institutions, and create new risks for safety, rights, and social cohesion.”
The report recommended a three-step approach for developing countries, beginning with adopting existing AI tools, adapting them to local conditions and gradually advancing towards frontier AI development.
Gaurav Nayyar, Director of the World Development Report 2026, said that the window to get this right was narrow.
“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations.
“Developing countries that build the foundations now–power, connectivity, skills and institutions–will be positioned to adopt and adapt AI for their people.”
The report stressed the need for sustained investment in basic infrastructure, noting that nearly one-third of rural schools in Sub-Saharan Africa still lacked reliable electricity, while more than two-thirds had no dependable internet access.
It said the World Bank Group was working with partners to provide electricity to 300 million people across Sub-Saharan Africa by 2030 as part of efforts to support broader digital and AI inclusion.
It said that the group was doing that through its Mission 300 initiative,
The report also urged governments to improve access to computing infrastructure, expand the availability of local data, including data in indigenous languages, and create an enabling environment for AI innovation.
It further called for stronger evidence-based policies, enhanced digital skills, transparent procurement systems and effective evaluation frameworks to ensure successful AI implementation.
The report emphasised the importance of building public trust by promoting the responsible use of AI through voluntary industry standards, supported by international cooperation and, where necessary, existing laws.
“Improved public services and better learning outcomes in schools will reinforce trust, but if AI embeds bias in government decisions or erodes data privacy, that trust will be difficult to recover. #AI Can Accelerate Growth in Developing Countries – World Bank# AI Trade Dangerously Financing Itself, China Just Found the Exit: CEO
