Developing countries can accelerate growth with AI – World Bank
World Bank Report Highlights AI’s Potential for Developing Countries
The World Bank Group has released a report asserting that artificial intelligence (AI) could enable developing countries to achieve a century’s worth of economic growth in just a decade, provided that governments act decisively and are committed to addressing existing disparities.
Titled “World Development Report 2026: The Promise of Artificial Intelligence,” the report forecasts that 16.2% of jobs in developing economies could experience productivity enhancements due to AI, a figure that closely aligns with the 18.7% projected for high-income countries.
The findings indicate that jobs in advanced economies are three times more likely to be at risk of automation through generative AI compared to those in lower-income countries. Specifically, an estimated 4.5% of jobs in developing regions face automation risk, compared to 14.2% in high-income nations.
Indermit Gill, the World Bank’s Chief Economist, emphasized that developing economies do not require extensive AI models or large data centers. He noted that implementing low-cost AI tools could lead to improvements in healthcare, education, judicial services, and agricultural practices.
The report encourages swift action from governments, stating, “AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet.”
According to the report, AI is already assisting individuals, businesses, and governments in problem-solving, information analysis, forecasting, and service delivery. This is particularly beneficial in nations that face limitations in skilled labor, reliable data, and public sector capacity.
The advantages of AI tools highlighted in the report include enhancing agricultural decision-making, improving medical diagnostics, boosting business productivity, and optimizing government functions such as tax collection, social welfare programs, healthcare, and education.
With developing economies currently experiencing their weakest growth in three decades, the World Bank believes that leveraging AI could substantially improve performance in these regions by the end of the decade, delivering tangible benefits to their populations.
However, the report cautions that these opportunities are not guaranteed. Most advanced AI systems are currently being developed by a limited number of countries and companies, while many developing nations still struggle with barriers such as inadequate infrastructure, limited internet access, and insufficient data and skills.
Gaurav Nayyar, Director of the World Development Report 2026, stated, “Developing countries that build the foundations now—power, connectivity, skills, and institutions—will be positioned to adopt and adapt AI for their people.”
The World Bank is collaborating with partners on electrification initiatives across Africa, advocating for expanded access to computing power and enhanced local data availability, including resources in local languages, to better serve citizens and bolster economies.
The report concludes with a reminder that while many AI pilots are underway, a significant challenge remains in identifying which projects yield meaningful results. It advises governments to create favorable conditions for innovators, facilitating investment, experimentation, and the scaling of successful initiatives.
