Artificial Intelligence – World Bank Says AI Can Accelerate Growth in Developing Economies
Artificial Intelligence – Developing nations could significantly improve productivity and public services through artificial intelligence if they strengthen digital infrastructure, governance, and workforce skills, according to a new World Bank report.
The World Bank has said that artificial intelligence presents a major opportunity for developing economies to achieve decades of progress within a much shorter period. The report suggests that countries with lower and middle incomes can benefit substantially from AI, provided they invest quickly in reliable electricity, internet connectivity, digital skills, and stronger public institutions. While the technology is often associated with automation, the report argues that its greatest value in these economies lies in enhancing human capabilities rather than replacing workers.
Lower Automation Risk, Higher Productivity Potential
According to the findings, jobs in wealthier nations face a much greater risk of being automated by generative AI than those in developing countries. Around 14.2 percent of existing jobs in high-income economies are considered vulnerable to automation, compared with only 4.5 percent in low- and middle-income countries.
At the same time, AI has the potential to raise workplace productivity across developing economies. The report estimates that nearly 16.2 percent of jobs in these countries could experience meaningful efficiency gains through AI adoption, a figure that is close to the projected 18.7 percent in advanced economies. This indicates that AI’s most immediate benefit for developing countries is likely to come from helping workers perform their jobs more effectively rather than replacing them.
AI Can Support Essential Public Services
The report highlights that artificial intelligence is already being used across different sectors to analyse information, improve forecasting, solve complex problems, and expand access to services. These capabilities are particularly valuable in countries where shortages of skilled professionals and administrative capacity often limit service delivery.
In healthcare, AI-powered tools can assist doctors in identifying diseases more quickly and accurately. Farmers can use AI-based insights to make better decisions on crop management, while businesses can improve efficiency and competitiveness through smarter data analysis. Public authorities can also apply AI to strengthen tax administration, improve social welfare programmes, enhance disaster preparedness, and support better delivery of healthcare and education services.
Infrastructure and Skills Remain Critical Challenges
World Bank Senior Vice President and Chief Economist Indermit Gill said developing countries do not need to build massive AI models or expensive data centres to benefit from the technology. Instead, practical adoption of existing AI solutions can help accelerate economic and social progress if governments focus on addressing fundamental infrastructure gaps.
The report notes that many developing economies continue to struggle with limited access to stable electricity, reliable internet services, quality data systems, digital literacy, and effective institutions. These shortcomings remain significant barriers to wider AI adoption and could prevent countries from fully capturing its economic benefits.
Unequal Access Could Increase Global Gaps
The World Bank also cautioned that without appropriate policies and investment, artificial intelligence could deepen existing inequalities both within and between countries. Uneven access to technology may strengthen the dominance of larger companies, widen income disparities, weaken confidence in public institutions, and introduce new concerns related to safety, individual rights, and social stability.
With many developing economies experiencing their slowest average growth in nearly 30 years, the report suggests that responsible AI adoption could become an important driver of economic recovery before the end of the decade. However, it emphasizes that long-term success will depend on governments creating the infrastructure, regulatory frameworks, and skilled workforce needed to support sustainable AI-driven development.