Artificial intelligence could enable developing nations to achieve a century's worth of progress within a single decade, but only if governments move quickly to fix critical deficits in power, internet access, and skills, according to a landmark World Bank report.
According to the report—the Bank's first comprehensive assessment of AI’s impact on the global south—only 4.5 percent of jobs in low- and middle-income countries are at risk of automation, compared to 14.2 percent in high-income nations. Conversely, AI could meaningfully enhance productivity for 16.2 percent of workers in developing economies, close to the 18.7 percent expected in wealthy nations.
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The World Development Report 2026: The Promise of Artificial Intelligence highlights that while developing countries face lower risks of job displacement from generative AI compared to high-income economies, they stand to gain nearly equal productivity boosts if they adopt the technology effectively.
"AI has thrown developing economies a lifeline, and they should seize it," said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.
"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 findings come at a critical time as developing economies struggle through their weakest average growth performance in three decades. The report notes that AI could significantly accelerate growth before the end of the 2020s, particularly in regions constrained by shortages of trained professionals, reliable records, and institutional capacity.
However, the World Bank warned that the opportunity is not guaranteed. Advanced AI development remains concentrated among a small group of nations and corporations, threatening to widen global inequalities if poor infrastructure prevents adoption elsewhere. In Sub-Saharan Africa, for instance, nearly one-third of rural schools lack electricity, while over two-thirds lack dependable internet access.
To prevent a deepening digital divide, the report outlines a three-step strategy for developing nations: first adopt available international tools, then adapt them to local contexts and languages, and eventually advance toward developing frontier AI systems over time.
"The window to get this right is narrow," warned Gaurav Nayyar, Director of the World Development Report 2026. "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 stresses that governments must also focus on expanding computing power, creating local language datasets, establishing clear regulatory frameworks, and protecting data privacy to build public trust as AI tools roll out.