AI offers 'lifeline' for emerging economies, World Bank says

The World Bank reports that developing countries can gain a century's worth of development in a decade by leveraging artificial intelligence, despite potential job losses.

Artificial intelligence could enable developing countries to gain a century's worth of development in a decade if they act quickly on power, connectivity ‌and skills gaps, the World Bank said in a report on Tuesday.

Widespread job losses due to AI are also less of a threat to emerging economies, the report found, adding that developing economies have more to gain and less to fear than richer nations. "AI has ‌thrown developing economies a lifeline, and they should seize it," Indermit Gill, the World Bank's chief economist, said in a ‌statement accompanying the report.

Companies worldwide are spending billions to harness an anticipated AI revolution, while governments are scrambling to ensure their nations reap the benefits. For many companies and countries, the challenge will be to build power-hungry data centres and find the energy generation to support them. But Gill said emerging economies ⁠do not ​need vast resources or bespoke large ⁠language models to benefit.

"By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach ⁠of millions," Gill said. Health workers may be able to use AI to speed diagnoses, teachers to improve lesson plans and farmers to ​determine what to plant and when. The International Monetary Fund has said that AI could boost Sub-Saharan Africa's economy by about ⁠4% over the next decade under the right circumstances.

FEWER JOBS AT RISK, BUT STAKES ARE HIGH Generative AI is three times more likely to threaten jobs ⁠in rich ​countries, where 14.2% are at risk, than in low- and middle-income countries, where 4.5% of jobs are exposed, the report found.

The share of jobs expected to benefit from meaningful productivity gains is also similar: 16.2% in developing economies and 18.7% in high-income ⁠countries. The report said governments must improve electricity and internet access, boost digital skills and expand access to smartphones and computing devices.

It ⁠warned, however, that AI could ⁠bring "greater income inequality, stealthier misinformation, and political repression." But the cost of missing out would be severe, according to the World Bank.

"Today's developing economies missed the first Industrial Revolution and spent the next two ‌centuries paying the ‌price," Gill said. "They cannot afford to miss this one."