Artificial Intelligence (AI) has the potential to dramatically accelerate economic development across emerging markets, enabling developing countries to achieve in a decade what might otherwise take a century, according to the World Bank’s World Development Report 2026.
The report highlights AI as a powerful driver of productivity, innovation and public service delivery, while stressing that countries must strengthen digital infrastructure and governance to fully unlock its benefits.
According to the World Bank, the immediate impact of AI in developing economies is expected to be driven more by productivity gains than job displacement. Only 4.5% of jobs in low- and middle-income countries are considered at risk of automation, while 16.2% of jobs could become significantly more productive through AI adoption.
The report suggests that AI can enhance multiple sectors, including healthcare, education, agriculture, governance and disaster management. Doctors could improve diagnoses, farmers could optimise crop management, businesses could streamline operations, and governments could deliver public services more efficiently.
To maximise AI’s potential, the World Bank recommends that governments first focus on strengthening essential infrastructure, including reliable electricity, affordable internet access, computing capacity, digital skills and local-language data. Rather than attempting to build advanced AI ecosystems immediately, countries are encouraged to adopt existing AI technologies, adapt them to local needs and gradually develop indigenous AI capabilities.
The report also emphasises the importance of responsible AI governance. It calls for stronger data protection, transparency, privacy safeguards, international cooperation and voluntary industry standards to ensure AI is deployed ethically and benefits society as a whole.
With many developing economies experiencing their slowest growth in decades, the World Bank believes AI could become a major catalyst for inclusive economic growth. However, it cautions that without adequate investments in infrastructure, institutions and human capital, the technology could widen existing inequalities instead of reducing them.
The report concludes that governments that invest early in digital infrastructure, workforce skills and responsible AI policies will be better positioned to harness artificial intelligence as a long-term engine of innovation, productivity and sustainable economic development.
