New Delhi, Aug 5 — Artificial intelligence offers a lifeline to developing countries, enabling them to achieve in a decade what might otherwise take a century, but only if governments rapidly close gaps in power, connectivity, skills and institutional quality, a World Bank report has said.

According to the World Bank, jobs in high-income countries are more than three times as likely to be at risk of automation by generative AI than those in low- and middle-income countries. In low- and middle-income economies, 4.5 per cent of existing jobs face automation risk, compared with 14.2 per cent in high-income countries.

At the same time, 16.2 per cent of jobs in developing economies could see productivity meaningfully boosted by AI — close to the 18.7 per cent expected in high-income countries. “The greatest promise for developing countries lies not in replacing workers, but in amplifying what they can do,” the report stated.

“AI has thrown developing economies a lifeline, and they should seize it. They do not need large models or big data centers to reap its benefits,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group. “By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions. But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet. World Development Report 2026 shows how developing countries are responding—and succeeding.”

The report noted that AI is already helping people, businesses and governments solve problems, analyse information, improve forecasts and deliver services at scale. These capabilities are particularly valuable in countries where trained professionals, reliable records and public capacity are often limited. AI tools can assist doctors in diagnosing patients, help farmers make better crop decisions and enable businesses to raise productivity. Governments can use AI to improve tax collection, social programmes, disaster response, healthcare and education.

Developing economies are currently experiencing their weakest average growth performance in three decades, the World Bank said. AI could significantly boost that performance before the end of the 2020s. However, many still lack the power, internet access, data, skills and institutions needed to use AI effectively.

Without deliberate action, the report cautioned, AI could widen gaps between countries, increase inequality within them, concentrate market power, weaken trust in public institutions and create new risks for safety, rights and social cohesion.