KAMPALA, August 4, 2026 — Artificial intelligence [AI] could enable developing countries to achieve in a decade what might otherwise take a century, provided governments move quickly to address gaps in electricity, internet connectivity, skills and institutional capacity, according to the World Development Report 2026: The Promise of Artificial Intelligence, released by the World Bank Group on Tuesday.
The report says AI presents a significant opportunity for developing economies at a time when they are experiencing their weakest average growth in three decades. However, it warns that countries failing to build the necessary foundations risk being left further behind.
According to the report, only 4.5 per cent of existing jobs in low- and middle-income countries are at risk of automation by generative AI, compared with 14.2 per cent in high-income economies. Meanwhile, AI could significantly improve productivity in 16.2 per cent of jobs in developing countries, close to the 18.7 per cent projected for wealthier nations.
The report says the greatest potential for developing countries lies not in replacing workers, but in enhancing their productivity.
“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 massive data centres 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 act quickly because AI is spreading faster and is more context-specific than earlier general-purpose technologies such as electricity and the internet.”
The report is the World Bank’s first comprehensive assessment of AI’s implications for developing countries. It finds that governments and businesses are already using AI to solve problems, analyse information, improve forecasting and expand service delivery.
It says AI can help doctors improve diagnoses, enable farmers to make better crop management decisions and boost business productivity. Governments could also use the technology to strengthen tax administration, improve social protection programmes, enhance disaster response and expand access to healthcare and education.
Despite these opportunities, the report cautions that the benefits of AI are far from guaranteed.
It notes that the most advanced AI systems are being developed by a small number of countries and companies, while many developing economies still face shortages of reliable electricity, internet access, computing power, local data, skilled workers and effective institutions.
Without deliberate policy action, the report warns, AI could widen the development gap between countries, increase inequality, concentrate market power, weaken trust in public institutions and create new risks to safety, privacy, rights and social cohesion.
To maximise the benefits of AI, the report recommends a three-stage approach: adopting existing AI tools, adapting them to local needs and, over time, advancing towards developing frontier AI technologies. It says this phased strategy would help countries avoid costly attempts to build sophisticated AI systems before establishing the necessary infrastructure.
“The window to get this right is narrow,” said Gaurav Nayyar, Director of the World Development Report 2026.
“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations. Developing countries that invest now in power, connectivity, skills and institutions will be better placed to adopt and adapt AI to meet their development needs.”
The report identifies investment in basic infrastructure as the immediate priority.
It notes that nearly one-third of rural schools in Sub-Saharan Africa still lack reliable electricity, while more than two-thirds do not have dependable internet access.
The World Bank Group said it is working with partners through Mission 300 to provide electricity access to 300 million people across Sub-Saharan Africa by 2030, creating a stronger foundation for digital transformation and AI adoption.
The report also urges governments to expand access to computing infrastructure, improve the availability of local data, including information in local languages, and create a more supportive environment for innovation by helping new firms attract investment, test new technologies and scale successful solutions.
It adds that governments should establish stronger systems to assess the effectiveness of AI projects, supported by improved technical skills and clearer procurement and evaluation frameworks.
To build public confidence, the report recommends that governments initially rely on voluntary industry standards, supported by international cooperation to encourage responsible AI development and reduce regulatory fragmentation. Where voluntary measures prove insufficient, it says, existing laws should be enforced to address harms such as bias, misuse of personal data and other risks associated with AI deployment.
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