AI offers lifeline to developing economies by accelerating growth: World Bank
New Delhi, Aug 5
Artificial intelligence gave a lifeline to developing countries, allowing them to achieve in a decade 'what might otherwise take a century', but only if their governments rapidly close gaps in power, connectivity, skills and institutional quality, a report has said.
The report from the World Bank said jobs in high‑income countries are more than three times as likely to be at risk of automation by generative AI than those in low‑ and middle‑income countries.
In low- and middle-income countries, 4.5 per cent of existing jobs are at risk of automation, compared with 14.2 per cent in high-income countries.
Meanwhile, 16.2 per cent of jobs in developing economies could see productivity meaningfully boosted by AI - close to the 18.7 per cent expected in high-income countries. "The greatest promise for developing countries lies not in replacing workers, but in amplifying what they can do," the report said.
"AI has thrown developing economies a lifeline, and they should seize it. They do not need large models or big data centers to reap its benefits," said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.
"By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions. But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet. World Development Report 2026 shows how developing countries are responding-and succeeding," he added.
The report highlighted that AI is already helping people, businesses, and governments solve problems, analyse information, improve forecasts, and deliver services at a larger scale.
These capabilities are especially valuable in countries where trained professionals, reliable records, and public capacity are often limited. AI tools can make it easier for doctors to diagnose patients, farmers to improve crop decisions, and businesses to become more productive.
Governments could use AI to improve tax collection, social programs, disaster response, health care, and education.
Developing economies are currently in the midst of their weakest average growth performance in three decades, World Bank said.
AI could significantly boost that performance before the end of the 2020s. Many developing economies still lack the power, internet access, data, skills, and institutions needed to use AI effectively, the report noted.
Without deliberate action, AI could widen gaps between countries, increase inequality within them, concentrate market power, weaken trust in public institutions, and create new risks for safety, rights, and social cohesion.
— IANS
Reader Comments
The 4.5% vs 14.2% automation risk stats are reassuring for Indian workers, but the 16.2% productivity boost potential is where the real opportunity lies. Imagine what AI-assisted diagnostics could do for our rural health clinics struggling with doctor shortages. Small, adapted tools are the right approach — we don't need massive data centers, we need smart, localized solutions.
Honestly, I'm a bit skeptical. The World Bank has made big promises about tech-driven development before, but here we are with data showing our economy grew at 6.4% this quarter while our neighbors are struggling. AI won't fix our institutional problems — corruption, bureaucratic delays, and poor implementation have plagued every major govt initiative. We need institutional reform first, tech second.
India has consistently proven that we can leapfrog in tech adoption, remember how UPI transformed digital payments? If we apply that same approach to AI, we could genuinely transform government services. The farmer example in the report is spot on — our farmers need accurate, localized guidance more than anything, and AI can provide that at scale when human extension services are overwhelmed.
The emphasis on "accelerating growth in a decade what might take a century" is genuinely exciting, but the push for speed worries me. Poorly implemented AI in tax collection or social programs could have disastrous consequences for the most vulnerable. Remember the issues with the new income tax portal? Now imagine an AI system making those same kind of errors but at massive scale. We need rigorous testing and human oversight, not just blind implementation.
We welcome thoughtful discussions from our readers. Please keep comments respectful and on-topic.