Artificial intelligence (AI) could enable developing countries to achieve a century’s worth of economic and social progress within a decade if governments move quickly to close gaps in electricity, internet access and digital skills, according to the World Bank’s latest “World Development Report 2026: The Promise of Artificial Intelligence.”
The report argues that emerging economies have more to gain and less to fear from AI than advanced nations, urging policymakers to embrace the technology rather than risk missing another transformative industrial revolution.
“AI has thrown developing economies a lifeline, and they should seize it. 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. But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet. World Development Report 2026 shows how developing countries are responding—and succeeding,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.
The World Bank said AI-powered applications could help health workers diagnose diseases more quickly, enable teachers to improve lesson planning, assist farmers with crop selection and weather forecasting, and expand access to public services in underserved communities.
For the 6.8 billion people living in low- and middle-income economies, AI solutions will need to be tailored to local realities, including voice-based services for people without smartphones or literacy skills. The report stressed that importing an AI model alone would not guarantee effective results without localisation and reliable local data.
Contrary to fears of widespread automation, the report found that only 4.5% of jobs in low- and middle-income countries face significant exposure to generative AI, compared with 14.2% in high-income economies. At the same time, around 16.2% of jobs in developing countries could see meaningful productivity gains, broadly comparable with the 18.7% expected in richer nations.
To unlock these benefits, the World Bank called for sustained investment in electricity generation and distribution, broadband connectivity, computing infrastructure, and digital skills, alongside wider access to smartphones and other digital devices.
“None of this is possible without first investing in the basics.” The report used these exact words to prove its point. It also used Sub-Saharan Africa as a good example; nearly one-third of rural schools still lack reliable electricity, and well over two-thirds have been deprived of dependable internet access.
“Closing this gap is already a priority — the World Bank Group is working with partners through Mission 300 to provide energy access to 300 million people across Sub-Saharan Africa by 2030, laying the foundation for broader digital and AI inclusion,” the study noted.
“Countries also need to expand access to computing power and improve the availability of local data, including in local languages, so AI tools can be tailored to serve their own people and economies. Governments should make it easier for new firms to attract investment, test ideas, and scale what works. Many AI pilots are already underway, but the bigger challenge is knowing which ones deliver results. Better evidence, stronger skills, and clearer procurement and evaluation frameworks will be essential,” the World Bank added further.
Building public trust is equally important. As AI evolves rapidly, the global body advised the governments to begin their policy responses by drawing on voluntary industry standards to encourage the technology’s responsible use, anchored in international cooperation to prevent regulatory fragmentation.
“When voluntary measures fall short, governments should apply existing laws to address the harms directly. Improved public services and better learning outcomes in schools will reinforce trust—but if AI embeds bias in government decisions or erodes data privacy, that trust will be difficult to recover,” the World Bank noted.
However, it cautioned that AI could also deepen inequality, spread misinformation, concentrate market power, and erode trust in public institutions if deployed without adequate safeguards for privacy, transparency, and accountability.
“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,” said Gaurav Nayyar, Director of the World Development Report 2026.
The report concluded by stating that timely adoption of AI could help lift growth, strengthen public services, and improve living standards across the developing world.