World Bank: AI offers rapid growth potential for developing nations

A new World Bank report outlines how developing nations can leverage AI to bypass traditional development timelines, provided they secure the necessary infrastructure and institutional support.

The World Bank Group suggests that developing nations could experience a century of progress within just one decade by leveraging artificial intelligence. Success depends on proactive governance and immediate efforts to bridge digital divides that might otherwise hinder advancement.

The ‘World Development Report 2026: The Promise of Artificial Intelligence’ indicates that 16.2% of jobs in developing nations could see productivity gains, a figure nearing the 18.7% projected for wealthier countries. Furthermore, the risk of automation is significantly lower in developing regions, where 4.5% of positions are susceptible, compared to 14.2% in high-income economies.

Chief Economist Indermit Gill highlighted that developing nations do not require massive data centers to benefit from AI. Instead, they can utilize affordable tools to improve outcomes in healthcare, education, legal services, and farming. Gill noted that AI adoption is outpacing historical technologies like the internet or electricity.

While AI can assist in solving complex problems and improving public services, significant obstacles remain. Most sophisticated AI systems are currently concentrated in a few wealthy nations, and many developing economies lack the necessary electricity, internet infrastructure, and technical expertise. Gaurav Nayyar, Director of the report, emphasized that establishing strong fundamental institutions is essential for countries to fully capitalize on these technologies.

The World Bank is actively working to improve electrification in regions like Africa while urging governments to foster environments where new businesses can innovate, secure funding, and scale effective solutions.

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