AI offers lifeline to developing economies amid weak growth | Report

Artificial intelligence could enable developing countries to achieve in a decade what might otherwise take a century, provided governments act swiftly to close gaps in power, connectivity, skills, and institutional quality, according to a press release by the World Bank Group. The findings come from the World Development Report 2026: The Promise of Artificial Intelligence, released on August 4, 2026 in Washington. The report is the first comprehensive assessment of AI’s implications for developing countries. It examines how businesses and governments in these economies have begun to use AI. It also outlines the risks of inaction as advanced systems are built by a small number of countries and companies.

Developing economies are currently experiencing their weakest average growth performance in three decades. The report finds that AI could significantly boost that performance before the end of the 2020s while delivering tangible benefits to people. However, many developing economies still lack the power, internet access, data, skills, and institutions needed to use AI effectively. Without deliberate action, AI could widen gaps between countries, increase inequality within them, and concentrate market power. It could also weaken trust in public institutions and create new risks for safety, rights, and social cohesion.

Jobs in high-income countries are more than three times as likely to be at risk of automation by generative AI than those in low- and middle-income countries. In developing economies, 4.5% of existing jobs are at risk, compared with 14.2% in high-income countries. At the same time, 16.2% of jobs in developing economies could see productivity meaningfully boosted by AI, close to the 18.7% expected in high-income countries. AI is already helping people, businesses, and governments solve problems, analyze information, improve forecasts, and deliver services at scale. These capabilities are especially valuable where trained professionals, reliable records, and public capacity are limited.

“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group. He noted that developing countries do not need large models or big data centers to reap AI’s benefits. 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. Gaurav Nayyar, Director of the World Development Report 2026, added that “the window to get this right is narrow.” The report sets out a three-step path: adopt available tools, adapt them to local conditions, and advance toward frontier AI development.

Investing in the basics remains essential. In Sub-Saharan Africa, nearly one-third of rural schools still lack reliable electricity, and more than two-thirds lack dependable internet access. The World Bank Group is working with partners through Mission 300 to provide energy access to 300 million people across Sub-Saharan Africa by 2030. Countries also need to expand computing power, improve local data availability including in local languages, and make it easier for new firms to attract investment and scale what works. Building public trust through voluntary industry standards, international cooperation, and existing laws will be equally important as AI evolves.