World Bank warns AI needed to boost developing economies

A new report from the World Bank argues that artificial intelligence presents a historic opportunity for developing economies to accelerate progress, but warns that failure to adapt could leave them further behind. The findings, published in the flagship World Development Report 2026 on Tuesday, August 4, suggest AI could enable these nations to achieve in a decade what might otherwise take a century, provided they address critical gaps in infrastructure and skills.

While fears of widespread job losses have dominated global discussions, the report indicates developing economies face less immediate risk from automation than wealthier nations. It estimates only 4.5 percent of jobs in low- and middle-income countries are at high risk from AI, compared to 14.2 percent in high-income economies. Conversely, about 16.2 percent of jobs in developing countries could see significant productivity gains as AI complements workers.

The report urges governments to focus on expanding digital foundations rather than trying to match the massive capital expenditures of leading tech firms. Key recommendations include investing in reliable electricity, high-speed internet connectivity, and...