World Bank: AI can fast-track growth in developing economies if governments act now
Artificial intelligence could help developing economies emerge from their weakest average growth performance in three decades, but only if governments act quickly to address infrastructure and institutional gaps, according to the World Bank Group.
Artificial intelligence could help developing economies emerge from their weakest average growth performance in three decades, but only if governments act quickly to address infrastructure and institutional gaps, according to the World Bank Group.
The World Bank’s World Development Report 2026: The Promise of Artificial Intelligence highlights that the technology presents developing nations with an opportunity to achieve in a decade what might otherwise take a century by accelerating economic transformation.
While global concerns over artificial intelligence have focused on job displacement, the technology is more likely to enhance productivity than replace workers in low- and middle-income countries. The report reveals that only 4,5% of existing jobs in developing economies face automation risk from generative AI, compared with 14,2% in high-income countries.
At the same time, artificial intelligence could significantly boost productivity in 16,2% of jobs across developing economies, closely trailing the 18,7% projected for high-income nations.
“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, World Bank Group senior vice-president and chief economist.
Gill explained that developing countries do not require massive models or expensive data centres to benefit. Instead, deploying smaller, low-cost tools adapted to local conditions can transform healthcare, education, judicial services, and agricultural extension.
“But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet,” Gill added.
The report marks the institution’s first comprehensive assessment of the technology’s implications for developing regions. Governments and businesses are already deploying systems to solve problems, analyse information, and expand service delivery, particularly where shortages of skilled professionals have constrained progress.
However, the World Bank warned that benefits are far from guaranteed. Many nations lack the electricity, internet access, computing power, local data, and skills required for effective deployment.
“The window to get this right is narrow,” said Gaurav Nayyar, World Development Report 2026 director. “Developing countries that build the foundations now — power, connectivity, skills, and institutions — will be positioned to adopt and adapt AI for their people.”
In Sub-Saharan Africa, nearly one-third of rural schools lack reliable electricity, while more than two-thirds lack dependable internet access. To address these deficits, the World Bank is partnering through Mission 300 to extend electricity access to 300-million people across Sub-Saharan Africa by 2030.
