AI can help developing economies achieve century’s progress in a decade if governments act now: World Bank

NEW DEHLI: Artificial intelligence (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, skills and institutional capacity, the World Bank said in its World Development Report 2026: The Promise of Artificial Intelligence.

The report said AI presents a significant opportunity for developing countries to accelerate economic growth and improve the delivery of public services at a time when these economies are experiencing their weakest average growth performance in three decades.

According to the report, only 4.5 per cent of existing jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2 per cent in high-income economies. At the same time, AI could meaningfully enhance productivity in 16.2 per cent of jobs in developing economies, close to the 18.7 per cent projected for high-income countries.

The World Bank said the greatest potential of AI in developing countries lies in augmenting workers rather than replacing them. “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.

He said developing countries do not require massive AI models or large-scale data centres to benefit from the technology, adding that affordable AI tools adapted to local needs could improve access to healthcare, education, judicial services and agricultural extension for millions of people.

The report noted that AI is already being deployed by governments and businesses in developing economies to analyse information, improve forecasts, solve problems and deliver services more efficiently. It said AI could help doctors diagnose patients more effectively, enable farmers to make better crop decisions, increase business productivity, and assist governments in improving tax administration, social welfare programmes, disaster response, healthcare and education.

However, the report cautioned that the benefits of AI are not guaranteed. It warned that the most advanced AI technologies are currently concentrated among a handful of countries and companies, while many developing economies continue to face shortages of electricity, digital infrastructure, computing power, local data, skilled workers and effective institutions.

Without timely policy action, AI could widen development gaps between countries, increase inequality within societies, concentrate market power and create new challenges related to public trust, privacy, safety and social cohesion, it said.

To address these risks, the report recommended a phased strategy for developing economies–first adopting existing AI tools, then adapting them to local conditions, and eventually advancing towards frontier AI development as foundational capabilities improve.

“The window to get this right is narrow,” said Gaurav Nayyar, Director of the World Development Report 2026. He said countries that invest now in reliable power supply, digital connectivity, human capital and stronger institutions will be better positioned to harness AI for economic and social development.

The report also called for greater access to computing infrastructure, improved availability of local-language data, stronger evidence-based evaluation of AI projects, and clearer procurement frameworks. It added that governments should encourage responsible AI adoption through voluntary industry standards backed by international cooperation, while using existing laws to address potential harms and safeguard public trust. (ANI)