Artificial intelligence could give developing economies an opportunity to accelerate economic and social progress at a time when development is advancing at its weakest pace in decades, according to the World Bank Group. In its World Development Report 2026, The Promise of Artificial Intelligence, the World Bank said countries could potentially achieve in a decade progress that might otherwise have taken a century if they act quickly to build the foundations needed for effective AI adoption. The report highlights artificial intelligence as a potential source of productivity growth, better public services and broader economic opportunities for developing countries. However, it also warns that the benefits will not automatically reach countries that lack reliable electricity, internet connectivity, digital skills and capable institutions. Governments therefore need to address these underlying gaps while creating conditions that allow businesses, public agencies and individuals to use AI effectively.
The World Bank said the development opportunity presented by AI is particularly important as many developing economies continue to face weak growth and persistent development challenges. AI applications can help firms improve productivity and allow governments to deliver services more efficiently, while individuals can use affordable digital tools to access information and support in areas such as education, healthcare, agriculture and small business. The report points to the potential of practical AI applications that can work through widely available technologies, including smartphones and low-cost digital services. Such applications could help address shortages of skilled professionals and improve access to knowledge in areas where resources remain limited. The World Bank has also highlighted the potential for AI to support financial inclusion by helping financial institutions assess creditworthiness and reach people who may have limited traditional financial records.
At the same time, the World Bank warned that developing economies face significant barriers to AI adoption. Reliable electricity, connectivity, computing capacity, data availability and skilled workers are among the foundations required to deploy AI at scale. Countries that fail to address these gaps risk being left behind as AI adoption expands in more advanced economies. The report also points to possible effects on employment, particularly in sectors where AI can automate tasks traditionally performed by workers. Entry-level roles in areas such as software, finance, business services and call centres could face disruption as AI capabilities improve. Developing economies may also become more dependent on foreign technology providers if they lack domestic capacity to develop, deploy and govern AI systems. The World Bank therefore stresses the importance of building local skills and institutions while ensuring that AI adoption is guided by policies that address risks related to inequality, misinformation, bias and decision-making.
The World Bank said governments should focus on establishing the foundations that allow AI to deliver broad economic benefits rather than treating the technology as an isolated innovation. Investments in electricity, connectivity, digital skills, data and computing infrastructure can help countries make practical use of AI across sectors, while stronger institutions can support responsible deployment and effective governance. The report also identifies AI as one of several forces that could influence economic prospects during the coming decade, alongside clean energy and deeper regional trade. For developing economies, the ability to adopt AI while building the necessary infrastructure and workforce could influence productivity, employment and access to essential services. The World Bank’s assessment ultimately presents AI as an opportunity that requires preparation, investment and appropriate policy choices, with the potential gains depending significantly on whether developing countries can establish the conditions needed to use the technology effectively.
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