Artificial intelligence could let developing countries achieve in a decade what might otherwise take a century — but only if governments act quickly to close gaps in power, connectivity, skills and institutions, the World Bank argues in its World Development Report 2026: The Promise of Artificial Intelligence, released August 4.

'AI has thrown developing economies a lifeline, and they should seize it,' said Indermit Gill, the World Bank's chief economist. '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.'

The first comprehensive assessment of AI's implications for developing countries finds that 4.5% of existing jobs there are at risk from generative AI — versus 14.2% in high-income countries — while 16.2% of jobs in developing economies could see productivity meaningfully boosted by AI, close to the 18.7% expected in richer nations. The greatest promise, the report says, lies not in replacing workers but in amplifying what they can do.

The opportunity is not guaranteed. Advanced AI is concentrated in a handful of countries and companies, and many developing economies lack the power, internet, data and skills to use it. Nearly a third of rural schools in Sub-Saharan Africa still lack reliable electricity, and more than two-thirds lack dependable internet access. Without deliberate action, AI could widen gaps between countries, increase inequality and concentrate market power, the report warns.

The Bank prescribes a three-step path — adopt available tools, adapt them to local conditions, then advance toward frontier development — while building trust through voluntary standards and existing laws. 'The window to get this right is narrow,' said Gaurav Nayyar, director of the report. 'AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations.'

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