World Bank says AI could accelerate development in emerging economies
A new World Bank report argues that AI could help developing economies accelerate economic and social development if governments invest in electricity, connectivity and digital skills, while warning that the technology also poses risks to inequality and governance.
Artificial intelligence could help developing economies accelerate development significantly if countries address gaps in electricity, internet connectivity and digital skills, according to a new report published by the World Bank.
The report argues that emerging economies have more to gain and less to fear from AI than high-income countries, as a smaller share of their jobs is exposed to automation. According to the analysis, 4.5% of jobs in low- and middle-income countries face potential disruption from generative AI, compared with 14.2% in high-income economies.
At the same time, the potential productivity gains are similar across income groups. The World Bank estimates that 16.2% of jobs in developing economies and 18.7% in wealthier countries could benefit meaningfully from AI-assisted productivity improvements.
The report suggests that developing countries do not need to build large AI models or extensive data centre infrastructure to benefit from the technology. Instead, governments and organisations could adapt smaller, lower-cost AI tools to local needs in areas such as healthcare, education, agriculture and public services.
Examples highlighted in the report include supporting health workers with faster diagnoses, helping teachers prepare educational materials, improving access to judicial services and assisting farmers in making planting decisions.
To realise these benefits, the World Bank says governments should prioritise expanding access to reliable electricity and internet services, strengthening digital skills and increasing the availability of smartphones and computing devices.
The report also warns that AI could exacerbate existing challenges, including income inequality, the spread of misinformation and political repression, if appropriate safeguards are not put in place.
World Bank Chief Economist Indermit Gill said developing economies should seize the opportunities created by AI, arguing that missing the technology’s potential could have long-term economic consequences.
