World Bank urges developing nations to adopt AI to boost growth

The World Bank Group has released its World Development Report 2026, warning that developing nations must adopt artificial intelligence to avoid falling further behind during a period of weak economic growth. Indermit Gill, the organization’s chief economist, described AI as a “lifeline” that could allow these nations to achieve in a decade what might otherwise take a century.

The report suggests that developing economies do not necessarily require massive data centers or large-scale models to benefit. Instead, the adaptation of small, low-cost AI tools to local conditions can enhance services in critical sectors such as healthcare, education, agriculture, and justice. These tools can assist in areas where trained professionals or reliable public records are often limited.

While high-income countries face a higher risk of job automation—estimated at 14.2% compared to 4.5% in low- and middle-income countries—developing nations stand to gain significant productivity boosts. The report emphasizes that the primary value for these economies lies in amplifying human capabilities rather than replacing workers. However, the World Bank cautions that governments must act quickly to address gaps in electricity, connectivity, and digital skills to realize these benefits.