World Bank report outlines AI potential for developing nations

A new World Bank Group report, ‘World Development Report 2026: The Promise of Artificial Intelligence’, suggests that AI could allow developing nations to accelerate a century of development within a decade. However, this potential depends on rapid government action to address gaps in connectivity, power, skills, and institutional quality.

The report notes a disparity in automation risks: 14.2% of jobs in high-income countries are at risk compared to 4.5% in low-and middle-income countries. Conversely, 16.2% of jobs in developing economies could see significant productivity boosts. Indermit Gill, Chief Economist at the World Bank Group, advised that developing nations should focus on adapting small, low-cost AI tools to local needs in sectors like medicine, education, and agriculture rather than building massive data centers.

Global AI governance remains a significant challenge. While initiatives like the OECD AI Principles, UNESCO’s Recommendation on the Ethics of AI, and the G7’s Hiroshima AI Process have been established, implementation remains uneven. Recent geopolitical shifts include China’s announcement of the World Artificial Intelligence Cooperation Organisation, a 38-country platform aimed at supporting innovation in developing nations.