A new World Bank report suggests that AI could significantly increase productivity in developing nations by augmenting human capabilities rather than replacing them. However, the potential for growth depends heavily on basic infrastructure like reliable electricity and internet access. Without these foundations, the digital divide between wealthy and developing countries may widen.
Artificial intelligence offers a transformative opportunity for developing nations to improve productivity and address long-standing service gaps, according to a recent World Bank report. While global discussions often focus on the potential for job automation, the report highlights a more nuanced reality for lower and middle-income economies. Specifically, about 16% of jobs in these regions could see productivity gains through AI tools, compared to over 18% in advanced economies. The primary benefit lies in using AI to enhance human work in areas where professional resources are currently limited, such as in healthcare, agriculture, and government service delivery.
Infrastructure as the Key to Adoption
Despite the clear promise, the World Bank warns that the benefits of AI are not automatic. The report identifies a significant infrastructure gap that threatens to hinder progress in developing nations. To effectively integrate these technologies, countries require stable electricity, widespread internet connectivity, and robust data systems. The report points out that while developed nations are more exposed to the risks of job automation—with 14.2% of jobs at risk compared to 4.5% in developing regions—the lack of foundational infrastructure remains a primary barrier to entry for lower-income countries. Without these essentials, the technological gap between nations risks widening further, potentially leading to increased social and economic disparity.
A Different Path for Growth
Indermit Gill, chief economist at the World Bank Group, emphasized that developing economies do not necessarily need to build massive, energy-intensive AI models or data centers to see results. Instead, the focus should be on practical applications that solve local problems. Because AI tools are being adopted much faster than earlier technologies like electricity or the internet, the timeframe for governments to act is limited. Experts at the World Bank note that AI can currently assist in critical functions such as tax collection, disaster management, and medical diagnosis, even in environments where high-level institutional capacity is currently low.
Risks and Future Monitorables
Investors and policymakers should note that the concentration of advanced AI model development in a few wealthy countries and select private companies poses a strategic risk for global equity. For developing nations, the key monitorables moving forward will include the speed at which governments implement supportive policy frameworks and invest in the necessary energy and digital infrastructure. Success in these areas will determine whether AI serves as a tool for economic convergence or becomes another factor that deepens existing global inequalities. The ability of these nations to provide equitable access to AI tools will be the most important factor in sustaining long-term productivity and social cohesion.