The World Bank is urging developing countries to move quickly on artificial intelligence, warning that they have a narrow window of opportunity to harness AI for economic growth before the technology widens existing global inequalities. In its World Development Report 2026, the Bank argues that AI could help low- and middle-income countries accelerate development in areas such as healthcare, education, agriculture, and public services. However, countries that delay adoption risk falling further behind as AI capabilities become increasingly concentrated in a small number of advanced economies and technology companies.
Contrary to widespread fears of mass automation, the report suggests that developing economies have more to gain than to lose from AI. Because many lower-income countries rely on manual labor and face shortages of skilled professionals, AI is expected to complement workers rather than replace them in the near term. The World Bank highlights affordable, task-specific "small AI" applications—such as AI tools for crop advice, medical diagnostics, education, and government services—as practical solutions that can deliver significant productivity gains without requiring massive data centers or frontier AI models.
The report emphasizes that simply importing AI tools will not be enough. Governments are encouraged to invest in the foundations that enable AI adoption, including reliable electricity, broadband connectivity, digital skills, affordable computing, and local-language data. The World Bank also recommends adapting AI systems to local conditions rather than relying solely on models designed for high-income countries. Building strong institutions, promoting responsible AI governance, and encouraging innovation through public-private partnerships are identified as essential steps for maximizing AI's long-term benefits.
While optimistic about AI's potential, the World Bank also warns of significant risks if adoption is poorly managed. These include misinformation, widening income inequality, market concentration, and weaker public trust in institutions. The report argues that governments should act as enablers, users, and regulators of AI—creating supportive infrastructure, deploying AI to improve public services, and implementing proportionate safeguards to ensure trustworthy use. Its central message is that developing countries do not need to compete with AI superpowers by building frontier models; instead, they should focus on adopting and adapting AI to local needs. By acting now, AI could enable decades of development progress in a much shorter time, while failure to do so could leave economies struggling to catch up in an increasingly AI-driven world.
