By Abigail David
The World Bank has urged developing countries to embrace artificial intelligence (AI), saying the technology offers a major opportunity to improve public services, strengthen governance and boost economic growth. The warning came as the organisation launched its latest World Development Report on Tuesday.
According to the World Bank’s Chief Economist, Indermit Gill, developing economies do not need expensive AI models or massive data centres to benefit from the technology. Instead, they can adapt affordable AI solutions to improve healthcare, education, agriculture and justice systems.
The report says AI could help developing countries recover from years of weak economic growth by expanding access to essential services and improving productivity. It recommends investing in reliable electricity, computing infrastructure and locally relevant data to support AI adoption.
The World Bank also highlighted practical examples, including AI-powered diabetes screening in Bangladesh and advanced weather forecasting tools that help reduce costs for farmers in India. It noted that AI solutions should be designed to suit local needs, including voice-based services for people without smartphones or literacy skills.
However, the report cautioned that AI also presents risks. Without proper safeguards, it could widen inequality, reduce trust in public institutions, increase market concentration and threaten privacy. It also warned that AI could eventually replace some middle-income jobs if governments fail to prepare workers for the changing economy.
