The World Bank has urged developing countries to move quickly in adopting artificial intelligence, warning that nations that ignore the technology risk falling further behind in the global economy.
The warning came as the bank launched its latest World Development Report, with its chief economist, Indermit Gill, describing AI as a major opportunity for countries struggling with slow growth and repeated economic shocks.
“AI has thrown developing economies a lifeline, and they should seize it,” Gill said.
He stressed that poorer nations do not need expensive supercomputers or massive data centres to benefit from AI.
Instead, they can deploy affordable, locally adapted tools to improve critical sectors such as healthcare, education, agriculture and justice.
The World Bank noted that many developing economies are currently experiencing their weakest average growth performance in three decades.
After years of setbacks, including the pandemic, economic disruptions and global conflicts, the institution warned that many countries are facing a prolonged period of economic difficulty.
The report said AI could help reverse this trend by expanding access to essential services for billions of people.
“AI could significantly boost that performance before the end of the 2020s while delivering tangible benefits to people,” the bank stated.
The World Bank cautioned that simply bringing advanced AI systems from wealthy countries may not solve problems in developing economies.
It called for investments in electricity supply, digital infrastructure, computing access and locally relevant data to ensure AI tools work effectively.
Gaurav Nayyar, director of the report, described AI as a rare opportunity to tackle challenges that have remained unresolved for generations.
“The window to get this right is narrow,” Nayyar said.
He added that AI could become a “once-in-a-lifetime opportunity” if countries adapt it to their own realities.
The report highlighted examples of AI already making an impact, including improving diabetes screening in Bangladesh and helping Indian farmers reduce costs through better weather predictions.
For communities without smartphones or reliable internet access, the World Bank said AI services may need to be delivered through simpler methods such as voice calls on basic mobile phones.
“Simply importing an AI model does not mean it will work well locally,” the report warned.
While promoting AI adoption, the World Bank also raised concerns about privacy, inequality and public trust.
The institution warned that poorly managed AI systems could deepen divisions between countries, increase inequality and weaken confidence in government institutions.
“If AI embeds bias in government decisions or erodes data privacy, that trust will be difficult to recover,” the report said.
The bank also cautioned that although AI has not yet caused widespread job losses in developing economies, future advances could threaten many middle-class jobs that provide pathways to economic progress.
The report, which examined both the opportunities and dangers of AI, was prepared with assistance from several leading AI platforms, including tools developed by OpenAI, DeepSeek, Google and Anthropic.
With 6.8 billion people, about 83 per cent of humanity living in low-income and developing countries, the World Bank said the future impact of AI will depend on whether governments can make the technology accessible, trusted and suitable for local needs.
