W’Bank urges developing nations to accelerate AI adoption

The World Bank is calling on developing nations to rapidly embrace artificial intelligence, viewing it as a critical tool to enhance economic growth and improve public services. The institution's World Development Report 2026, titled "The Promise of Artificial Intelligence," emphasizes that these countries must quickly address deficiencies in electricity, internet access, computing power, digital skills, and institutional quality to fully capitalize on AI's potential.

This recommendation comes as developing economies face their most sluggish growth in three decades. The World Bank suggests AI presents a unique opportunity to reverse this trend. Contrary to concerns about job displacement in wealthier nations, the report indicates that workers in developing countries face a significantly lower risk of automation. It estimates only 4.5% of jobs in low- and middle-income countries are vulnerable to generative AI, compared to 14.2% in high-income economies.

Instead, AI is projected to augment workers in developing nations, with about 16.2% of jobs expected to see substantial productivity gains, a figure close to the 18.7% anticipated in richer countries. "AI has thrown developing economies a lifeline, and they should seize it," stated Indermit Gill, World Bank Group Senior Vice President and Chief Economist. He added that countries do not require massive infrastructure or large data centers to benefit. By adapting affordable AI tools to local needs, they can improve access to healthcare, education, judicial services, and agricultural support for millions.

However, Gill cautioned that "AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet." The report, the first comprehensive World Bank assessment on AI's impact on developing economies, notes that governments and businesses are already using the technology for problem-solving, analysis, and service delivery. Despite these opportunities, the World Bank warns that inadequate infrastructure, including limited access to reliable electricity, affordable internet, computing resources, quality local data, and skilled workers, could hinder many economies from realizing AI's benefits.

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AI has 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. But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet.