The World Bank has called on developing countries to make urgent investments in electricity, internet connectivity, digital skills, and institutional capacity if they hope to unlock the transformative benefits of artificial intelligence (AI). In its newly released 2026 World Development Report: The Promise of Artificial Intelligence, the global lender said AI has the potential to accelerate development at an unprecedented pace, enabling nations to achieve in a decade what might otherwise take a century. However, it warned that poor infrastructure and limited digital access remain major barriers to realizing that promise.
According to the report, developing economies stand to benefit significantly from AI without facing the same level of job displacement seen in wealthier nations. The World Bank estimates that only 4.5 percent of jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2 percent in high-income economies. At the same time, around 16.2 percent of jobs in developing nations could experience meaningful productivity gains, highlighting AI’s potential to improve efficiency while complementing, rather than replacing, workers.
The report emphasizes that developing countries do not need massive data centres or expensive AI models to benefit from the technology. Instead, the World Bank encourages governments to adopt affordable AI tools tailored to local needs. Such technologies could improve healthcare by supporting medical diagnoses, help farmers make smarter agricultural decisions, strengthen education systems, enhance disaster response, modernize tax administration, and improve access to justice and social protection for millions of people.
Despite these opportunities, the World Bank cautioned that AI’s benefits will not materialize automatically. Many developing nations continue to struggle with unreliable electricity, poor internet coverage, limited computing infrastructure, inadequate data resources, and shortages of skilled professionals. The institution also warned that without strong policies and strategic investments, AI could deepen existing inequalities, concentrate economic power, weaken public trust, and create new challenges related to privacy, safety, and social stability.
World Bank Chief Economist Indermit Gill described AI as a rare opportunity that developing economies cannot afford to ignore, urging governments to move quickly before the technological gap widens further. Echoing this view, World Development Report Director Gaurav Nayyar stressed that countries investing today in power, connectivity, digital skills, and effective institutions will be best positioned to adapt AI for national development. The report concludes that strengthening digital infrastructure is now more critical than ever, particularly in sub-Saharan Africa, where many rural schools still lack reliable electricity and internet access, limiting the region’s ability to fully participate in the AI revolution.
source: The cable
