Global lender warns weak infrastructure could prevent poorer countries from using artificial intelligence to accelerate development….
Developing countries must urgently strengthen basic infrastructure such as electricity supply, internet connectivity and workforce skills if they hope to maximise the economic opportunities created by artificial intelligence (AI), the World Bank Group has warned.
The global financial institution said AI could enable developing economies to achieve development milestones within a decade that might otherwise take generations, but cautioned that inadequate infrastructure and limited technical capacity could prevent many countries from benefiting fully from the technology.
The warning was contained in the World Bank’s 2026 World Development Report titled “The Promise of Artificial Intelligence,” released on Tuesday.
According to the report, AI represents a major opportunity for developing nations, but governments must first establish the foundations required for adoption, including reliable power, digital connectivity, quality data systems and skilled human capital.
The World Bank noted that developing countries face a different AI landscape from wealthier economies, with automation risks remaining relatively limited.
It said only 4.5 per cent of existing jobs in low- and middle-income countries are vulnerable to automation through generative AI, compared with 14.2 per cent in high-income economies.
At the same time, the report projected that 16.2 per cent of jobs in developing countries could experience significant productivity improvements through AI, a figure close to the 18.7 per cent estimated for high-income countries.
The institution said the biggest opportunity for poorer economies lies not in replacing workers with machines but in using AI tools to enhance human productivity.
“AI has thrown developing economies a lifeline. They do not need large models or big data centres to reap its benefits,” said Indermit Gill, the World Bank Group’s Senior Vice-President and Chief Economist.
He explained that countries could adapt smaller, affordable AI solutions to local conditions and use them to expand access to essential services such as healthcare, education, agriculture and justice.
“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 said.
He, however, stressed that countries must move quickly because AI adoption is spreading faster and requires more local adaptation than previous general-purpose technologies such as electricity and the internet.
The report highlighted several areas where AI is already creating opportunities, including healthcare, farming, business operations and public administration.
According to the World Bank, AI can support doctors in diagnosing illnesses, help farmers improve crop decisions, increase business efficiency and strengthen government services such as tax collection, disaster management, education delivery and social protection programmes.
Despite the potential benefits, the World Bank stressed that AI-driven progress will not happen automatically.
The institution identified major barriers facing developing countries, including unreliable electricity, limited internet access, inadequate computing infrastructure, poor-quality data, shortages of skilled workers and weak institutions.
It warned that without deliberate policy decisions, AI could deepen inequality both within and between countries, increase the concentration of economic power, reduce trust in public institutions and create new risks around privacy, safety and social stability.
The report advised developing countries to focus first on adopting existing AI solutions, adapting them to their specific needs and gradually building the capacity required to develop more advanced systems.
Director of the World Development Report 2026, Gaurav Nayyar, said countries that invest early in the necessary foundations would be better positioned to take advantage of AI’s potential.
“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations,” Nayyar said.
“Developing countries that build the foundations now power, connectivity, skills and institutions will be positioned to adopt and adapt AI for their people.”
The report also highlighted the digital infrastructure gap affecting many developing regions, noting that nearly one-third of rural schools in sub-Saharan Africa lack reliable electricity, while more than two-thirds do not have dependable internet access.
The World Bank said closing these gaps would be critical if developing economies are to ensure that AI becomes a tool for broad-based growth rather than another driver of inequality.
