World Bank Says AI Could Deliver 100 Years of Growth in a Decade for Developing Countries

The World Bank Group says artificial intelligence (AI) has the potential to help developing countries achieve what would normally take a century of economic growth in just 10 years, provided governments move quickly to build the foundations needed for widespread adoption.

The projection is contained in the World Development Report 2026: The Promise of Artificial Intelligence, released on Tuesday.

According to the report, 16.2 per cent of jobs in developing economies could experience productivity gains from AI, compared with 18.7 per cent in high-income countries.

Lower automation risk for developing economies

The report also found that jobs in developing countries are less vulnerable to automation by generative AI than those in wealthier nations.

It stated that 4.5 per cent of jobs in low- and middle-income countries are at risk of automation, compared with 14.2 per cent in high-income economies.

The World Bank’s Chief Economist, Indermit Gill, said developing nations do not necessarily require expensive AI models or massive data centres to benefit from the technology.

According to him, affordable AI tools can improve healthcare, education, judicial services and agricultural extension.

“AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet,” Gill said.

AI can improve public services

The report noted that AI is already helping individuals, businesses and governments solve problems, analyse information, improve forecasting and expand service delivery, particularly in countries facing shortages of skilled professionals and institutional capacity.

Among the potential benefits identified are improved crop management for farmers, better medical diagnosis, increased business productivity, enhanced tax collection, stronger social programmes, faster disaster response, and improved healthcare and education services.

With developing economies experiencing their weakest average growth performance in three decades, the World Bank believes AI could significantly boost economic growth before the end of the 2020s.

Infrastructure remains a major challenge

Despite the opportunities, the report warned that many developing countries risk being left behind because advanced AI systems are currently concentrated in a small number of countries and companies.

It identified inadequate electricity, limited internet access, poor data availability, skills shortages and weak institutions as major barriers to AI adoption.

Gaurav Nayyar, Director of the World Development Report 2026, urged governments to invest in the basic infrastructure needed to support AI adoption.

“Developing countries that build the foundations now—power, connectivity, skills, and institutions—will be positioned to adopt and adapt AI for their people,” he said.

The World Bank also called for expanded access to computing power and greater availability of local data, including information in indigenous languages, to ensure AI tools better serve local economies.

It further advised governments to create an enabling environment that allows innovative firms to attract investment, test new ideas and scale successful AI solutions.