World Bank Urges Developing Countries to Embrace AI to Boost Growth
The World Bank has urged developing economies to take advantage of artificial intelligence (AI), describing the technology as a major opportunity to improve public services and accelerate development.
The bank’s Chief Economist, Indermit Gill, said AI has provided developing countries with an opportunity they should not ignore, stressing that nations do not need expensive AI models or massive data centres to benefit from the technology.
“AI has thrown developing economies a lififeline, and they should seize it,” Gill said during the launch of the World Bank’s annual World Development Report.
He explained that countries can adopt cheaper, locally adapted AI solutions to improve sectors such as healthcare, education, justice and agriculture.
While advanced AI systems developed mainly in countries like the United States and China can process huge amounts of information and automate complex tasks, the World Bank noted that such systems require enormous computing power, electricity and water resources.
AI as a development tool
The report recommended that developing countries focus on building AI systems that match their local realities rather than simply importing foreign technologies.
It highlighted examples of AI being used to improve healthcare in Bangladesh through increased diabetes screening and helping Indian farmers reduce costs through better weather forecasting.
The World Bank stressed that AI solutions must be accessible to ordinary people, including those without smartphones or internet access.
“For example, AI solutions will need to be delivered through voice calls on basic mobile phones for those who cannot read or afford smartphones,” the report stated.
The bank warned that simply adopting foreign AI models without adjusting them to local needs may not produce effective results.
Need for better infrastructure
The report advised developing nations to invest in reliable electricity supply, expand access to computing technology and improve the availability of local data to maximise AI benefits.
Gaurav Nayyar, director of the report, said the opportunity presented by AI was significant but required urgent action.
“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations,” he said.
The report noted that about 6.8 billion people, representing 83 per cent of the world’s population, live in low- and middle-income countries, making it important that AI development addresses their specific challenges.
World Bank warns of AI risks
Despite the potential benefits, the World Bank cautioned that AI could also increase inequality, strengthen the dominance of major technology companies and weaken public trust if not properly managed.
The report warned that AI systems could introduce bias into government decisions, threaten data privacy and create new risks for safety and social stability.
The bank also said that while AI has not yet caused major job losses in developing countries, it could eventually affect economic mobility by reducing the number of middle-class jobs that help people improve their living standards.
The World Development Report was produced with support from several leading AI platforms, including tools from OpenAI, DeepSeek, Google and Anthropic, according to the disclosure.
