AI Could Help Developing Countries Achieve A Century of Progress in A Decade – World Bank Says

The World Bank has noted that Artificial intelligence (AI) could enable developing countries to accomplish in just a decade what might otherwise take a century.

According to the World Development Report 2026: The Promise of Artificial Intelligence released by the World Bank Group, it found that jobs in high-income countries are more than three times as likely to be affected by automation from generative AI than those in low- and middle-income countries.

While 14.2% of existing jobs in high-income economies are considered at risk of automation, only 4.5% of jobs in developing economies face similar risks.

At the same time, the report noted that AI has the potential to significantly improve productivity across developing economies. About 16.2% of jobs in these countries could experience meaningful productivity gains through AI adoption, compared with 18.7% in high-income economies.

According to the report, the greatest opportunity for developing countries lies in using AI to enhance human capabilities rather than replace workers.

“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 centers 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. World Development Report 2026 shows how developing countries are responding—and succeeding.”

The publication marks the World Bank’s first comprehensive assessment of AI’s impact on developing economies. It found that governments, businesses, and individuals are already deploying AI to solve complex problems, analyze information, improve forecasting, and deliver services more efficiently.

The report highlighted that these capabilities are particularly valuable in countries where shortages of trained professionals, reliable records, and institutional capacity often limit service delivery.

AI can assist healthcare professionals in diagnosing patients, help farmers make better crop decisions, improve business productivity, and enable governments to strengthen tax administration, expand social protection, enhance disaster response, and improve healthcare and education services.

The World Bank also noted that developing economies are currently experiencing their weakest average growth performance in three decades. It stated that AI could provide a significant boost to economic growth before the end of the 2020s while improving outcomes for citizens.

However, the report cautioned that the opportunity is far from guaranteed. It observed that the most advanced AI systems are concentrated among a small number of countries and companies, while many developing nations still lack the electricity, internet infrastructure, computing power, data, skills, and institutional frameworks required to adopt AI effectively.

Without deliberate policy action, AI could widen economic disparities between countries, increase inequality within nations, concentrate market power, weaken public trust, and create new risks related to safety, human rights, and social cohesion.

To address these challenges, the report outlined a three-stage strategy for developing countries: first adopt existing AI tools, then adapt them to local needs, and eventually advance toward developing frontier AI capabilities.

According to the report, this phased approach would help countries avoid costly attempts to replicate advanced AI systems before establishing the necessary foundations.

“The window to get this right is narrow,” said Gaurav Nayyar, Director of the World Development Report 2026. “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 emphasized that investment in basic infrastructure remains essential for AI adoption. 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.

It noted that closing these infrastructure gaps is already a priority through initiatives such as Mission 300, under which the World Bank Group and its partners aim to provide electricity access to 300 million people across Sub-Saharan Africa by 2030, creating a stronger foundation for digital transformation and AI adoption.

Beyond infrastructure, the report urged countries to expand access to computing resources and improve the availability of locally relevant datasets, including data in indigenous languages, to ensure AI solutions address local needs.

It also encouraged governments to create enabling environments that make it easier for innovative companies to attract investment, test AI solutions, and scale successful projects.

While numerous AI pilot projects are already underway across developing economies, the report stressed that governments must focus on identifying which initiatives produce measurable results.