World Bank: AI Could Deliver Century of Progress in a Decade for Developing Economies Amid Weak Growth

The World Bank Group released its World Development Report 2026: The Promise of Artificial Intelligence on August 4, 2026, stating that artificial intelligence offers developing economies a rare opportunity to accelerate progress amid the weakest average growth performance in three decades. According to the report, AI could enable these countries to achieve in a decade what might otherwise take a century, provided governments swiftly address gaps in power, connectivity, skills, and institutional quality (World Bank press release).

“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group. “They do not need large models or big data centers to reap its benefits. 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.” Gill noted that AI is spreading faster and is more context-specific than earlier technologies such as electricity and the internet (World Bank press release).

The report finds that generative AI threatens only 4.5 percent of existing jobs in low- and middle-income countries, compared with 14.2 percent in high-income countries. At the same time, 16.2 percent of jobs in developing economies could see meaningful productivity gains from AI, close to the 18.7 percent expected in richer nations. The greatest promise lies in amplifying workers’ capabilities rather than replacing them, particularly in areas with shortages of trained professionals (Reuters; World Bank press release).

AI is already being used to improve medical screening, assist farmers with weather forecasts, support teachers, and enhance government services such as tax collection and disaster response. Examples include increased diabetes screening in Bangladesh and cost reductions for Indian farmers via advanced forecasts. Tools can be delivered via voice calls on basic mobile phones to reach those without smartphones or literacy (Courthouse News; World Bank WDR 2026).

The report outlines a three-step framework: adopt existing AI tools, adapt them to local languages, data, institutions, and needs, and eventually advance toward more advanced capabilities where feasible. Most developing countries should prioritize the first two steps, as building frontier models requires massive investment in chips, data centers, and researchers that is unrealistic near-term for many (World Bank WDR 2026).

Gaurav Nayyar, Director of the World Development Report 2026, said: “The window to get this right is narrow. AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations. Developing countries that build the foundations now—power, connectivity, skills, and institutions—will be positioned to adopt and adapt AI for their people” (World Bank press release).

Without action, the report warns AI could widen gaps between and within countries, increase inequality, concentrate market power, weaken institutional trust, and raise risks around misinformation, bias, privacy, and social cohesion. In Sub-Saharan Africa, for instance, nearly one-third of rural schools lack reliable electricity and more than two-thirds lack dependable internet. The World Bank is supporting energy access efforts such as Mission 300 to reach 300 million people by 2030 as a foundation for digital inclusion (World Bank press release).

Development progress has reached its weakest pace in 75 years, making the potential productivity and service-delivery gains from AI particularly significant if complements such as reliable power, internet, local data, and skills are put in place (World Bank WDR 2026).