W’Bank urges developing nations to accelerate AI adoption

The World Bank has called on developing countries to accelerate the adoption of artificial intelligence, saying the technology could help lift economic growth, improve public services and enable poorer nations to achieve in a decade what might otherwise have taken a century.

In its World Development Report 2026: The Promise of Artificial Intelligence, released on Tuesday, the lender said developing economies must move quickly to close gaps in electricity, internet connectivity, computing capacity, digital skills and institutional quality to fully benefit from AI.

The report comes as developing economies experience their weakest average growth performance in three decades, with the World Bank arguing that AI presents a rare opportunity to reverse the trend before the end of the decade.

While concerns over AI have largely focused on job losses in advanced economies, the report found workers in developing countries face a much lower risk of automation. It estimated that 4.5 per cent of existing jobs in low- and middle-income countries are vulnerable to automation by generative AI, compared with 14.2 per cent in high-income economies.

Instead, AI is expected to complement workers in developing economies, with about 16.2 per cent of jobs projected to experience significant productivity gains, close to the 18.7 per cent expected in richer countries.

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

“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,” he added.

 The report, the first comprehensive World Bank assessment of AI’s implications for developing economies, found governments and businesses are already using the technology to solve problems, analyse information, improve forecasting and expand the delivery of public services.

According to the report, AI can help doctors improve diagnoses, enable farmers to make better planting and crop management decisions, increase business productivity and strengthen public administration. Governments could also use the technology to improve tax collection, social protection programmes, disaster response, healthcare and education.

Despite the opportunities, the World Bank warned that many developing countries lack the infrastructure needed to harness AI effectively. Limited access to reliable electricity, affordable internet, computing resources, quality local data and skilled workers could prevent many economies from capturing the technology’s benefits.

Without deliberate policy action, the report warned, AI could widen development gaps between countries, increase inequality within economies, concentrate market power, weaken trust in public institutions and create new risks to safety, privacy and social cohesion.

“The window to get this right is narrow,” World Development Report 2026 Director Gaurav Nayyar said.

“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 recommends a three-stage strategy for developing countries: adopt existing AI tools, adapt them to local needs and gradually build the capabilities required to develop more advanced AI systems over time. It said this approach would help countries avoid costly attempts to replicate frontier AI technologies before establishing the necessary foundations.

The World Bank also stressed that investment in basic infrastructure remains essential. In Sub-Saharan Africa, nearly one-third of rural schools still lack reliable electricity, while more than two-thirds do not have dependable internet access, limiting opportunities for digital and AI adoption.

The lender said its Mission 300 initiative, which aims to expand electricity access to 300 million people across Sub-Saharan Africa by 2030, would help lay the groundwork for broader digital inclusion.

Beyond infrastructure, the report urged governments to expand access to computing power, increase the availability of local datasets, including those in indigenous languages, and create an enabling environment for innovation by making it easier for firms to attract investment, test AI applications and scale successful solutions.

It also called for stronger evidence-based policymaking, improved procurement and evaluation frameworks, and greater investment in digital skills to ensure AI projects deliver measurable economic benefits.

To build public trust, the World Bank recommended that governments initially rely on voluntary industry standards backed by international cooperation while applying existing laws where necessary to address harms. It warned that if AI systems reinforce bias in public decision-making or undermine data privacy, public confidence in the technology could be difficult to restore.