If developing countries act now, AI could allow them to achieve in a decade what would otherwise have taken a century
Artificial intelligence (AI) could allow developing countries to achieve in a decade what would otherwise take a century, provided they act quickly to close the gaps that still exist in access to electricity, connectivity, skills, and institutional quality, and thus avoid being left behind. This is the main message of the World Development Report 2026, published on August 4, 2026, by the World Bank Group.
Titled ‘The Promise of Artificial Intelligence,’ the report notes that jobs in high-income countries are more than three times as exposed to the risk of automation by generative AI compared to jobs in low- and middle-income countries, where 4.5% of existing jobs are threatened, versus 14.2% in high-income countries.At the same time, 16.2% of jobs in developing economies could see significant productivity gains thanks to AI, a level close to the 18.7% expected in high-income countries. For developing countries, the potential of AI doesn’t lie in replacing workers, but in boosting their abilities.”AI offers developing economies a vital lever of action that they must seize, emphasizes Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group. They don’t need huge models or massive data centers to take advantage of it. By adapting small, low-cost AI tools to local realities, these countries can bring better services to millions of people, from healthcare to agricultural outreach, as well as education and justice. But they need to act fast: compared to earlier general-purpose technologies like electricity and the internet, AI spreads faster and its applications are more closely tied to local contexts. The World Development Report 2026 shows how developing countries are rising to the challenge — and reaping the rewards.”
This report, the first comprehensive assessment of AI issues for developing countries, highlights how businesses and governments in these countries have begun to use this technology. It shows that AI is already helping people, businesses, and governments solve problems, analyze information, improve forecasting, and deliver services on a larger scale.
These benefits are especially valuable in countries where the number of skilled professionals, reliable records, and public capacities are often limited. AI tools help doctors make diagnoses, farmers make better decisions, and businesses increase productivity. Governments could also use AI to improve tax collection, social programs, disaster management, healthcare, and education.AI could improve growth in developing countries, provided…
Developing economies are currently experiencing their lowest average growth in thirty years. According to the report, AI could significantly boost these performances by the end of the 2020s, while also bringing tangible benefits to populations. However, this outlook is not guaranteed.
The most advanced AI systems are currently being developed by a small number of countries and companies, while many developing economies still lack electricity, internet access, data, skills, and institutions needed to effectively leverage AI.Without voluntary measures, AI could widen gaps between nations, increase inequalities within countries, concentrate market power, weaken trust in public institutions, and create new risks to security, rights, and social cohesion.
The report suggests a three-step approach: adopt the available tools, adapt them to local realities, and over time, move toward developing advanced AI. This gradual approach can help developing countries avoid costly and ineffective attempts to replicate advanced AI models before the necessary conditions are in place.”The room to make the right choices is tight,” points out Gaurav Nayyar, director of the 2026 World Development Report. “AI offers a unique opportunity to solve problems that have been unsolvable for generations. Developing countries that start laying the essential foundations today — electricity, connectivity, skills, and institutions — will be well-positioned to adopt and adapt AI for the benefit of their people.”
None of this is possible without first investing in the basics. In sub-Saharan Africa, nearly a third of rural schools still lack a stable electricity supply, and more than two-thirds don’t have reliable internet access. Closing this gap is already a priority: under the Mission 300 initiative, the World Bank Group is working with partners to bring electricity to 300 million people in sub-Saharan Africa by 2030, laying the groundwork for more inclusive digital development and AI.Countries also need to expand access to computing power and improve the availability of local data, including language data, so that AI tools can be tailored to the needs of their people and economies. Governments should help young companies more easily raise capital, test ideas, and scale up solutions that prove effective.
Many AI pilot projects are already underway, but the main challenge is figuring out which ones actually deliver results. Stronger evidence, better skills, and clearer frameworks for procurement and evaluation will be key.Finally, building public trust in AI is just as important. With technology evolving so quickly, governments should first rely on voluntary industry standards to promote responsible AI use, based on international cooperation to avoid regulatory fragmentation.
When these voluntary measures aren’t enough, they should enforce existing laws to directly address AI-related harms. Tangible improvements in public services and school outcomes will boost trust; on the other hand, it will be hard to restore if AI introduces biases in public decisions or compromises data privacy.
