Amanze Chinonye
Artificial intelligence could help developing economies accelerate growth and improve public services, but countries that fail to invest in digital infrastructure, skills and reliable power supply risk being left behind, the World Bank has warned.
The warning was contained in the lender’s World Development Report 2026: The Promise of Artificial Intelligence, which said AI offers developing countries an opportunity to achieve decades of progress within a shorter timeframe if they act quickly to address critical gaps.
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World Bank Group Senior Vice President and Chief Economist Indermit Gill said developing economies do not need to compete with advanced nations in building expensive AI models or large data centres to benefit from the technology.
“AI has thrown developing economies a lifeline, and they should seize it,” Gill said, adding that smaller, affordable AI applications adapted to local needs could expand access to healthcare, education, agricultural services and justice.
The report found that generative AI poses a lower risk of widespread job displacement in developing economies than in richer countries. Only 4.5% of jobs in low- and middle-income countries are considered highly vulnerable to automation, compared with 14.2% in high-income economies.
At the same time, AI could raise productivity in 16.2% of jobs in developing economies, close to the 18.7% projected for advanced economies, suggesting the technology’s biggest benefit could come from enhancing workers’ capabilities rather than replacing them.
The World Bank said governments and businesses in developing countries are already deploying AI to improve decision-making, analyse information, strengthen forecasting and expand service delivery.
It highlighted potential applications including supporting doctors with faster diagnoses, helping farmers make better production decisions, improving business efficiency and strengthening government operations such as tax collection, social protection, disaster response and education delivery.
However, the lender warned that many developing countries lack the foundations required to fully harness AI, including reliable electricity, affordable internet access, computing capacity, quality data and skilled personnel.
The report noted that developing economies are currently experiencing their weakest average growth performance in three decades, but said responsible AI adoption could help improve economic outcomes before the end of the decade.
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The World Bank cautioned that without adequate safeguards, AI could deepen inequality, increase misinformation, concentrate economic power, undermine public trust and create risks around data privacy and algorithmic bias.
To maximise the benefits of AI, the lender recommended a phased approach: countries should first adopt available tools, adapt them to local conditions and gradually build the capacity required to develop more advanced systems.
“The window to get this right is narrow,” said Gaurav Nayyar, Director of the World Development Report 2026, urging governments to prioritise investments in electricity, connectivity, skills and institutions.
The report highlighted Africa’s infrastructure challenges, noting that nearly one-third of rural schools in Sub-Saharan Africa lack reliable electricity, while more than two-thirds do not have dependable internet access.
The World Bank said expanding energy access, including through its Mission 300 initiative aimed at connecting 300 million people across Sub-Saharan Africa by 2030, would be crucial to widening digital inclusion and supporting AI adoption.
It also called on governments to improve access to computing resources, develop local-language data systems, encourage innovation and establish clear frameworks to ensure AI is deployed responsibly.
The lender said building public confidence would be central to the success of AI adoption, requiring stronger data protection measures, safeguards against bias and effective oversight mechanisms.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
