India and other developing economies are better positioned to benefit from artificial intelligence than many advanced economies. While AI is expected to automate a significant share of jobs in wealthier nations, the report finds that the risk of widespread job displacement is much lower in countries like India. Instead, AI is more likely to enhance worker productivity, improve public services, and support economic growth by helping people perform tasks more efficiently rather than replacing them outright.
The report estimates that only about 4.5% of jobs in developing economies are highly exposed to AI-driven automation, compared with 14.2% in high-income countries. Many Indian jobs require physical, interpersonal, or context-specific skills that are difficult to automate, meaning AI is expected to function primarily as an assistant rather than a substitute. The World Bank believes AI can help address shortages of skilled professionals in areas such as healthcare, education, agriculture, and public administration by making workers more productive and improving access to essential services.
For India, the opportunity lies in adopting practical, affordable AI solutions instead of competing directly with global leaders in frontier AI models. The report encourages investment in reliable electricity, broadband connectivity, digital skills, and local-language AI systems so that AI can reach businesses, farmers, students, and government agencies across the country. At the same time, it cautions that sectors such as IT outsourcing could face disruption as companies increasingly automate routine digital work, making workforce upskilling and innovation increasingly important.
Overall, the World Bank views AI as a development accelerator for India rather than a widespread employment threat. If India continues strengthening its digital infrastructure, expanding AI literacy, and deploying AI responsibly across key sectors, the technology could help the country achieve faster economic growth and improve the delivery of public services. The report concludes that developing economies have more to gain and less to fear from AI—but only if they act quickly to build the infrastructure, institutions, and skills needed to support widespread adoption.
