World Bank urges developing nations to seize AI opportunity

The World Bank on Tuesday urged developing countries to embrace artificial intelligence, arguing that adapting small, low-cost AI tools to local needs could significantly improve access to healthcare, education, judicial services and agriculture.

In its World Development Report 2026: The Promise of Artificial Intelligence, released on Tuesday, the multilateral lender said AI could enable developing economies to achieve in a decade what might otherwise take a century, provided governments move quickly to bridge gaps in electricity, internet connectivity, digital skills and institutional capacity.

“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.


Gill said 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. World Development Report 2026 shows how developing countries are responding, and succeeding,” he said.

According to the report, workers in high-income countries are more than three times as likely to face automation risks from generative AI as those in low- and middle-income economies. It estimates that 14.2% of existing jobs in high-income countries are at risk, compared with 4.5% in developing economies.

At the same time, AI could significantly raise productivity in developing countries. The report estimates that 16.2% of jobs in these economies could see meaningful productivity gains from AI, close to the 18.7% projected for high-income countries.

It argues that AI's biggest opportunity for developing economies lies not in replacing workers but in enhancing their productivity.

Describing the study as the first comprehensive assessment of AI's implications for developing countries, the World Bank said businesses and governments are already deploying the technology to solve problems, analyse information, improve forecasting and deliver public services at scale.

The report suggests governments could use AI to strengthen tax administration, improve social welfare programmes, enhance disaster response, and expand healthcare and education services.

“Developing economies today are in the midst of their weakest average growth performance in three decades. AI could significantly boost that performance before the end of the 2020s while delivering tangible benefits to people,” the report finds.

(With PTI inputs)