TBM Report
Artificial Intelligence could allow developing economies to leapfrog decades of traditional development and achieve in ten years what previously took a century, provided governments move swiftly to bridge key infrastructure and skill gaps, according to a flagship World Bank report.
The flagship report titled ‘World Development Report 2026: The Promise of Artificial Intelligence’ highlights that job automation risks from generative AI are far higher in developed nations than in low- and middle-income countries. While 14.2% of jobs in high-income economies face automation risks, the figure drops to just 4.5% in developing nations. Conversely, AI tools could augment worker productivity across 16.2% of jobs in developing countries, approaching the 18.7% rate expected in high-income nations.
Indermit Gill, Chief Economist and Senior Vice President of the World Bank Group, emphasized that developing nations do not need expensive data centers or massive foundation models to benefit. By tailoring lightweight, low-cost AI applications to local contexts, governments can deliver healthcare, educational resources, agricultural advice, and legal aid to millions of underserved citizens.
However, the report warns that the window of opportunity is narrow. Developing economies are currently navigating their weakest decade of average growth in thirty years. Without immediate investments in basic power grids, broadband connectivity, digital literacy, and regulatory safeguards, AI adoption could widen global inequalities and concentrate market power among a handful of tech monopolies.
To navigate this transition, the report outlines a structured three-step approach: adopting accessible off-the-shelf tools, tailoring them to local languages and needs, and gradually developing frontier AI capabilities. World Bank Director Gaurav Nayar noted that jumping directly to advanced AI without securing basic power and connectivity infrastructure would be inefficient and costly.
In Sub-Saharan Africa, where nearly two-thirds of rural schools lack reliable internet, the World Bank is partnering on ‘Mission 300’ to deliver electricity to 300 million people by 2030. Alongside physical infrastructure, the report stresses the importance of privacy safeguards, ethical frameworks, and public trust to prevent algorithmic bias in government services.
