World Bank Urges Developing Countries to Embrace AI or Risk Being Left Behind
World Bank Urges Developing Countries to Embrace AI or Risk Being Left Behind
The World Bank has urged developing countries to embrace affordable artificial intelligence tools to improve healthcare, education, agriculture, justice and governance.
World Bank Calls on Developing Countries to Harness Artificial Intelligence
The World Bank has urged developing countries to embrace artificial intelligence (AI) as a powerful tool for improving public services, boosting economic growth and addressing long-standing development challenges.
The global financial institution warned that countries that fail to adapt to the rapidly changing AI landscape could find themselves increasingly disadvantaged as wealthier nations accelerate investment in advanced technology.
The call came as the World Bank launched its latest World Development Report, which examines how developing economies can use artificial intelligence to improve the lives of billions of people.
According to Indermit Gill, Chief Economist of the World Bank Group, AI represents a major opportunity for developing economies, particularly because they do not necessarily need to build expensive AI models or massive data centres to benefit from the technology.
“AI has thrown developing economies a lifeline, and they should seize it,” Gill said.
He stressed that countries can instead adapt affordable AI tools to their local circumstances and use them to improve essential sectors such as healthcare, education, agriculture and justice.
AI Could Transform Public Services in Developing Economies
Artificial intelligence has rapidly moved from being a largely experimental technology to becoming a practical tool capable of performing a wide range of tasks.
Advanced AI systems can analyse huge quantities of information, identify patterns, generate content, support decision-making and automate repetitive work.
For developing countries, the World Bank believes the technology could provide an opportunity to deliver services to populations that have traditionally struggled to access them.
In healthcare, for example, AI could help identify patients at risk of certain diseases, support medical screening and assist health workers in areas where doctors and specialists are scarce.
In education, AI-powered tools could help students access personalised learning materials and give teachers additional support in preparing lessons and assessing learning outcomes.
Agriculture could also benefit significantly. Farmers could receive improved weather forecasts, information about crops and assistance with identifying potential threats to agricultural production.
The justice system could potentially use AI to help organise legal information and make some services more accessible to citizens who cannot afford expensive legal assistance.
The World Bank argues that these applications could help developing economies expand access to important services without having to wait decades to build the same level of infrastructure available in wealthier countries.
Developing Countries Do Not Need Huge AI Data Centres
One of the most important messages from the World Bank report is that developing economies do not necessarily need to compete with the United States, China or other major technology powers in building enormous AI infrastructure.
The most advanced AI models require substantial computing resources, sophisticated data centres, electricity and water.
Building and operating such facilities can be extremely expensive, while their environmental impact is also attracting increasing attention.
Instead, the World Bank recommends that developing countries concentrate on adapting existing AI technologies to local needs.
This could include using smaller and more affordable AI systems capable of performing specific tasks rather than attempting to develop massive general-purpose models from scratch.
The approach could be particularly important for countries with limited financial resources.
Rather than spending billions of dollars trying to replicate the technology infrastructure of major AI powers, governments could focus on practical applications that directly improve people's lives.
AI Could Help Boost Weak Economic Growth
The World Bank's warning comes at a difficult time for many developing economies.
Countries across the developing world have faced a series of economic shocks during the 2020s, including the effects of the COVID-19 pandemic, rising costs, geopolitical tensions, disruptions to global trade and weaker economic growth.
The World Bank has described the period as a challenging one for developing economies, with growth performance remaining under pressure.
Against this background, AI could become an important source of productivity.
Businesses could use artificial intelligence to automate routine tasks, analyse markets, improve customer service and make better-informed decisions.
Governments could use AI to improve the delivery of public services and make administrative processes more efficient.
Farmers could gain access to better information, while workers and entrepreneurs could use AI tools to develop new products and services.
The World Bank believes these improvements could contribute to stronger economic performance before the end of the decade.
Africa Could Benefit From Localised AI Solutions
For Africa, the AI opportunity could be particularly significant.
Many African countries face challenges including limited access to healthcare professionals, education gaps, unreliable infrastructure and large populations living in rural communities.
AI could help overcome some of these barriers if the technology is designed around the realities of local communities.
For example, AI-powered healthcare services could support medical workers in remote locations.
Educational platforms could provide learning assistance to students who lack access to qualified teachers.
Agricultural tools could help farmers make better decisions based on weather conditions and other available information.
However, the technology will have to be designed for the people who are expected to use it.
The World Bank report highlights the importance of developing AI solutions that work even for people who do not own expensive smartphones or have reliable internet connections.
In some communities, AI services may need to be delivered through voice calls and basic mobile phones rather than sophisticated applications.
This is particularly important in countries where digital access remains uneven.
Local Data Will Be Critical to AI Success
Simply importing an AI model developed in another country does not guarantee that it will produce accurate or useful results locally.
AI systems learn from data, and data from one population may not accurately represent another.
Language, culture, economic conditions, healthcare systems, agricultural practices and legal frameworks can vary dramatically from one country to another.
This means developing countries will need greater access to relevant local data.
The World Bank is therefore calling for investments in digital infrastructure, electricity generation and distribution, computing resources and the availability of high-quality local data.
These investments could help countries develop AI applications that better understand local circumstances and provide more useful results.
AI Must Not Increase Inequality
While the World Bank sees enormous potential in artificial intelligence, it also warns that the technology carries serious risks.
If access to AI remains concentrated among wealthy countries, large companies and highly skilled workers, the technology could deepen existing inequalities.
AI could also increase the market power of a small number of technology companies capable of developing and controlling the most advanced systems.
Another concern is the potential use of AI in government decision-making.
If AI systems contain biases, make inaccurate decisions or rely on incomplete information, they could unfairly affect citizens.
Privacy is another major concern.
Governments and businesses may increasingly collect and process personal information as AI becomes more widely used. Without appropriate safeguards, this could undermine public confidence and expose sensitive data to misuse.
The World Bank therefore emphasises the importance of building public trust alongside technological development.
AI and the Future of Jobs
Employment is another issue that developing countries cannot afford to ignore.
In the short term, the World Bank says the employment risks associated with AI remain relatively limited in developing economies.
However, the long-term picture could be more complicated.
Artificial intelligence may eventually automate some jobs traditionally performed by middle-class workers.
That could become a major problem because middle-income jobs have historically provided an important pathway for people to improve their living standards.
If AI eliminates large numbers of these opportunities without creating sufficient new ones, economic mobility could become more difficult.
Governments will therefore need to prepare workers for a changing labour market.
Investments in education, digital skills, vocational training and lifelong learning could become increasingly important.
The Window of Opportunity Is Narrow
Gaurav Nayyar, director of the World Development Report, described AI as a potentially once-in-a-generation opportunity to address problems that have resisted solutions for decades.
But he also warned that the opportunity will not remain open indefinitely.
Countries that establish strong digital infrastructure, improve education and develop appropriate AI policies could benefit substantially.
Those that fail to adapt may find themselves falling further behind.
The challenge is therefore not simply whether developing countries should adopt AI, but how they can adopt it responsibly, affordably and inclusively.
What Developing Countries Should Do Now
The World Bank's recommendations point to several important priorities for governments.
First, countries should expand access to reliable and affordable electricity because AI and digital services depend on stable infrastructure.
Second, governments should improve internet and computing access so that AI tools can reach more people.
Third, countries need to invest in local data and ensure that AI systems are capable of understanding local languages and conditions.
Fourth, policymakers should establish safeguards around privacy, bias and responsible AI use.
Finally, education systems should prepare citizens for a future in which AI becomes a normal part of the workplace.
AI Could Become a Development Shortcut
The World Bank's message is ultimately about using AI as a development tool rather than simply chasing technological prestige.
Developing countries do not necessarily need the biggest AI models or the largest data centres.
They need practical systems capable of solving real problems.
From helping farmers understand changing weather conditions to improving disease screening, expanding educational opportunities and making legal services more accessible, AI could help governments reach millions of people at a lower cost.
For billions of people living in developing economies, the technology could potentially accelerate progress that would otherwise take generations.
But success will depend on accessibility, local adaptation, infrastructure, responsible governance and public trust.
Artificial intelligence is rapidly reshaping the global economy, and the World Bank believes developing countries cannot afford to sit on the sidelines.
The technology presents both an opportunity and a warning.
If countries successfully adapt affordable AI tools to local needs, they could improve public services, increase productivity and accelerate economic development.
But if AI becomes concentrated in a small group of wealthy countries and companies, it could widen the gap between nations and deepen inequality.
The next few years will therefore be critical.
For developing economies, the goal should not simply be to become leaders in artificial intelligence. It should be to make AI useful, affordable and accessible to ordinary people.
FAQ:
What is the World Bank saying about AI and developing countries?
The World Bank is encouraging developing countries to adopt artificial intelligence tools to improve public services, economic productivity and access to healthcare, education, agriculture and justice.
Do developing countries need large AI data centres?
Not necessarily. The World Bank says developing countries can benefit from smaller, lower-cost AI tools adapted to local needs without having to build massive data centres or develop the world's largest AI models.
How can AI help developing countries?
AI can support healthcare screening, personalised education, agricultural forecasting, legal services, government administration and other areas where access to skilled professionals and resources is limited.
Can AI increase inequality?
Yes. The World Bank warns that AI could widen gaps between countries and increase inequality within countries if access to the technology is concentrated among wealthy nations, companies and highly skilled workers.
Why is local data important for AI?
AI systems work best when they have relevant information about the populations and environments they serve. Local data can help make AI systems more accurate and useful for specific countries and communities.
What is the future of AI in Africa?
AI could play an important role in Africa's development by improving access to healthcare, education, agriculture, financial services and government services. However, success will depend on affordable connectivity, reliable electricity, digital skills, local data and responsible regulation.
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