New report says artificial intelligence can transform governance, healthcare, education and agriculture if countries invest in digital infrastructure and local innovation.
The World Bank has urged developing countries to rapidly adopt artificial intelligence (AI) technologies to improve governance, public service delivery and economic growth, warning that nations that fail to embrace the technology risk being left behind.
The call was made on Tuesday during the launch of the World Bank’s 2026 World Development Report, where the institution highlighted AI as a major opportunity for low- and middle-income countries to accelerate development despite ongoing economic challenges.
The World Bank’s Chief Economist, Indermit Gill, said developing countries do not need expensive AI models or massive data centres to benefit from the technology. Instead, he stressed that adapting affordable AI tools to local needs could improve healthcare, education, agriculture and justice systems.
According to the report, developing economies are experiencing their weakest average growth in three decades, but AI has the potential to significantly boost economic performance before the end of the decade while improving access to essential services for billions of people.
The report encouraged governments to invest in electricity, digital infrastructure, computing capacity and local data systems to support AI adoption. It also recommended deploying AI solutions that are accessible to underserved communities, including voice-based services for people without smartphones or literacy skills.
The World Bank cited successful examples of AI applications, including improved diabetes screening in Bangladesh and advanced weather forecasting that helps reduce costs for farmers in India.
The institution also cautioned that AI adoption must be accompanied by strong data protection, transparency and accountability measures to build public trust. It warned that poor governance of AI could widen inequality, concentrate market power, undermine privacy and eventually threaten middle-class jobs if not properly managed.
The report concluded that while AI presents a once-in-a-generation opportunity to accelerate development, governments must act quickly to harness its benefits through responsible policies, strategic investments and local innovation.