New Delhi, August 5: Artificial Intelligence (AI) is becoming a lifeline for developing countries. It enables them to achieve in a decade what would take a century without it. However, this potential can only be realized if governments in these nations swiftly address deficiencies in power, connectivity, skills, and institutional quality, according to a recent report.
The World Bank’s report highlights that low and middle-income countries face a risk of job automation due to generative AI that is more than three times higher than that of high-income nations. In low and middle-income countries, 4.5% of existing jobs are at risk of automation, while the figure stands at 14.2% for high-income countries.
The report states, “AI could significantly enhance job productivity in developing economies by 16.2%, compared to an estimated 18.7% in high-income countries.”
Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group, remarked, “AI has offered new hope to developing economies, and they must leverage it. They do not require large models or massive data centers to reap its benefits.”
He further noted, “By adapting small and affordable AI tools to local conditions, they can provide better medical care, education, judicial services, and agricultural assistance to millions. AI is spreading faster than earlier common technologies like electricity and the internet, and it operates more specifically.” The ‘World Development Report 2026’ illustrates how developing countries are responding and succeeding in this regard.
The report emphasizes that AI is already assisting people, businesses, and governments in solving problems, analyzing information, improving forecasts, and delivering services on a large scale. These capabilities are particularly valuable in countries where trained professionals, reliable records, and governmental capacity are often limited. AI tools can simplify tasks such as diagnosing diseases for doctors, enhancing crop-related decisions for farmers, and increasing productivity for businesses.
Governments can utilize AI to improve tax collection, social programs, disaster response, healthcare, and education.
The World Bank noted that developing economies are currently experiencing their lowest average growth in the past three decades. It cautioned that without careful measures, AI could widen disparities between countries, increase inequality within them, concentrate market power in a few hands, erode trust in government institutions, and pose new risks to security, rights, and social cohesion.
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