AI Could Help Developing Nations Leap Forward, World Bank Says

The report points out that developing countries are in a different position from wealthier nations when it comes to AI and employment.

Artificial intelligence could help developing countries make decades of progress in a much shorter time if they strengthen the foundations needed to support the technology, according to the World Bank Group's World Development Report 2026: The Promise of Artificial Intelligence. The report explains that AI offers a practical opportunity to improve essential services, increase productivity, and support economic growth, though success will depend on investments in electricity, internet access, digital skills, and stronger public institutions.

The report points out that developing countries are in a different position from wealthier nations when it comes to AI and employment. While high-income economies face a greater risk of jobs being replaced by generative AI, many lower and middle-income countries are more likely to see workers become more productive with the help of AI tools. The World Bank estimates that only 4.5% of existing jobs in developing economies face automation risks, while 16.2% of jobs could experience meaningful productivity gains through AI. This suggests that AI can support workers instead of replacing them, allowing people to perform tasks faster, make better decisions, and improve the quality of services they deliver.

AI Can Improve Everyday Services

The report highlights that AI is already being used in several developing countries to solve practical problems. Doctors can use AI systems to assist with medical diagnosis, giving patients quicker access to healthcare support. Farmers can rely on AI-powered recommendations to improve crop planning and increase yields. Businesses can analyze data more efficiently, helping them reduce costs and improve operations. Governments can also use AI to strengthen tax collection, improve disaster response, expand social welfare programs, and deliver better education and healthcare services.

These improvements are especially valuable in places where there are shortages of trained professionals or limited access to reliable public records. AI can help fill these gaps by making information easier to process and allowing public services to reach more people without requiring a large increase in staff.

Strong Foundations Will Decide Success

The World Bank warns that AI alone cannot solve development challenges. Many countries still face major barriers, including unreliable electricity, weak internet connectivity, limited computing infrastructure, and shortages of skilled workers. Without addressing these issues, the benefits of AI could remain out of reach for millions of people.

The report notes that these basic needs are still missing in many regions. In Sub-Saharan Africa, for example, nearly one-third of rural schools do not have reliable electricity, while more than two-thirds lack dependable internet access. The World Bank says expanding energy and digital infrastructure should remain a top priority because AI depends on these essential services to function effectively.

The report also encourages governments to improve access to computing power, expand the availability of local data, and support content in local languages so AI tools can better reflect the needs of individual communities.

A Step-by-Step Approach for Governments

Instead of trying to compete immediately with countries building advanced AI models, the World Bank recommends a gradual strategy. Governments should begin by adopting existing AI tools, then adapt them to local needs, and only later consider developing advanced AI capabilities as their infrastructure and expertise grow.

The report also calls for policies that encourage innovation by helping new businesses secure investment, test ideas, and expand successful projects. At the same time, governments need stronger systems to evaluate AI programs so public money supports solutions that deliver measurable results.

Building Trust Is Just as Important

The report stresses that public confidence will play a major role in determining how widely AI is accepted. Governments are encouraged to promote responsible AI use by following international standards and applying existing laws when technology causes harm. Protecting privacy, reducing bias in AI systems, and improving transparency will help people trust digital services that increasingly influence healthcare, education, and government decisions.

The World Bank believes AI presents one of the biggest development opportunities of this generation. Countries that invest now in electricity, internet connectivity, digital skills, and effective institutions will be better positioned to use AI to improve lives, strengthen economies, and expand access to essential public services over the coming years.