“If they act now, AI could help them achieve in a decade what might have taken a century“- World Bank
Artificial intelligence could help developing countries achieve in a decade what might otherwise take a century, but only if governments move quickly to address gaps in electricity, internet access, skills and institutions, the World Bank has said.
The World Bank made the assessment in its World Development Report 2026: The Promise of Artificial Intelligence, released on August 4.
The report said AI is already being used in developing economies to improve productivity, analyse information, strengthen public services and support decision-making across sectors including healthcare, agriculture, education and government.
AI may boost jobs rather than replace them
According to the report, jobs in high-income countries are more than three times as likely to be exposed to automation by generative AI than those in low- and middle-income countries.
It said 4.5 per cent of existing jobs in developing economies are at risk of automation, compared with 14.2 per cent in high-income countries.
At the same time, about 16.2 per cent of jobs in developing countries could receive a significant productivity boost from AI, compared with 18.7 per cent in high-income economies.
The World Bank said this means the biggest opportunity for developing countries may not be replacing workers with machines, but using AI to help people work more effectively.
“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.
“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,” Gill said.
He added that developing countries would need to act quickly because AI is spreading faster and is more context-specific than earlier general-purpose technologies such as electricity and the internet.
AI could improve public services
The report said AI could help countries where shortages of trained professionals, reliable records and public-sector capacity continue to limit service delivery.
In healthcare, AI could support doctors with diagnosis and other clinical decisions. Farmers could use AI to make better crop and production choices, while businesses could deploy the technology to improve productivity.
Governments could also use AI to strengthen tax collection, improve social protection programmes, respond to disasters and deliver better health and education services.
The World Bank said the technology could also help developing economies improve their weak growth performance.
Developing countries are currently experiencing their weakest average growth performance in three decades, according to the report. AI could help improve economic performance before the end of the decade if countries create the right conditions for adoption.
But the report warned that the benefits would not automatically reach everyone.
Power and internet access remain major barriers
The World Bank said many developing economies still lack the electricity, internet connectivity, data, computing power and skilled workers needed to take full advantage of AI.
Without action, it warned that AI could widen the gap between countries, deepen inequality, increase market concentration and weaken public trust.
The situation is particularly challenging in Sub-Saharan Africa.
The report said nearly one-third of rural schools in the region lack reliable electricity, while more than two-thirds do not have dependable internet access.
The World Bank said it is working with partners through Mission 300, an initiative aimed at providing electricity access to 300 million people across Sub-Saharan Africa by 2030.
World Bank outlines three-step approach
The report recommends that developing countries follow a three-stage approach: adopt existing AI tools, adapt them to local needs and eventually advance towards developing frontier AI.
This approach, it said, would allow countries to benefit from technologies that are already available instead of spending heavily to reproduce advanced AI systems before they have the basic infrastructure needed to support them.
Gaurav Nayyar, Director of the World Development Report 2026, said the opportunity presented by AI should not be missed.
“The window to get this right is narrow,” 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,” he added.
Trust and local data also critical
The World Bank said countries would also need to improve access to local data, including data in local languages, so AI systems can better reflect the needs of their populations.
It also called for stronger evidence, skills, procurement systems and evaluation frameworks to determine which AI projects are actually delivering results.
Building public trust, the report said, would be equally important.
Governments were encouraged to make use of voluntary industry standards and international cooperation to promote responsible AI use while applying existing laws where voluntary measures are not enough.
The World Bank warned that bias in government decisions and poor protection of personal data could undermine public confidence in AI.
For developing economies, the report concluded, the challenge is therefore not simply whether to use AI, but how quickly they can build the foundations needed to make the technology work for their people and economies.
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