WORLD BANK: DEVELOPING COUNTRIES RISK BEING LEFT BEHIND WITHOUT AI

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Agency Report

The World Bank has urged developing countries to accelerate the adoption of artificial intelligence (AI), warning that those that fail to embrace the technology risk falling further behind in economic growth and public service delivery.

The call was made on Tuesday during the launch of the bank’s annual World Development Report, where the World Bank Group’s Chief Economist, Indermit Gill, described AI as a major opportunity for developing economies.

According to Gill, low- and middle-income countries do not need expensive AI models or massive data centres to benefit from the technology.

Instead, he encouraged governments to adopt affordable, locally tailored AI solutions that can improve healthcare, education, agriculture and justice systems.

“AI has thrown developing economies a lifeline, and they should seize it,” Gill said.

The World Bank noted that developing economies are experiencing their weakest average growth in three decades but said AI could significantly boost productivity and improve living standards before the end of the decade.

The report recommends investing in electricity infrastructure, expanding access to computing power and improving the availability of local data to support AI adoption.

It also highlights practical applications of AI, including improving diabetes screening in Bangladesh and helping Indian farmers reduce costs through more accurate weather forecasting.

The bank stressed that AI solutions must be adapted to local realities, noting that many people in developing countries rely on basic mobile phones rather than smartphones.

It said voice-based AI services could help extend healthcare, legal, educational and agricultural services to underserved communities.

The report also urged policymakers to strengthen public trust by ensuring AI systems protect privacy, avoid bias and promote transparency.

While describing AI as a once-in-a-generation opportunity, the World Bank cautioned that the technology could also widen inequalities, concentrate economic power, undermine trust in public institutions and threaten social cohesion if not properly regulated.

It further warned that although AI currently poses limited risks to employment in developing countries, widespread adoption could eventually eliminate many middle-income jobs that drive economic mobility.

The report was produced with assistance from several advanced AI models, including tools developed by OpenAI, DeepSeek, Google and Anthropic.