Artificial intelligence (AI) could help developing economies improve productivity, expand businesses and create economic opportunities for a growing workforce, with about 1.2 billion young people expected to reach working age in developing countries over the next 10 to 15 years.
The World Bank Group says the technology offers developing countries a way to accelerate economic development by improving how businesses and public services operate, particularly as millions of young people enter labour markets.
Although concerns about job displacement remain, the Bank’s estimates suggest that developing economies face lower exposure to generative AI automation than wealthier countries.
About 14% of jobs in high-income countries are exposed to automation through generative AI, compared with approximately 5% in low- and middle-income countries.
However, the Bank’s assessment points to productivity improvements as a significant potential benefit, with an estimated 16% of jobs in developing countries positioned to experience substantial productivity gains from AI, compared with 19% in high-income economies.
The figures highlight an opportunity for developing countries to use AI to improve economic output and business efficiency while preparing workers for changes in the labour market.
Small-Scale AI Offers Practical Applications
The World Bank Group is advocating the use of practical AI tools designed to address specific challenges and local needs, rather than relying exclusively on complex and expensive systems.
Such applications could support farmers with agricultural information, help health workers deliver services, translate educational materials into local languages, and enable businesses to reach new customers.
These tools could help small and medium-sized enterprises reduce time spent on routine tasks, improve access to information, and serve customers more efficiently.
The approach offers developing economies a cost-effective way to integrate AI into business operations and public services without requiring substantial upfront investment in advanced technology.
The Bank recommends a gradual approach in which countries adopt existing AI tools, adapt them to local languages, data and requirements, and progressively build the expertise needed to develop more advanced applications.
This could allow businesses and public institutions to benefit from existing technologies while strengthening domestic capacity to support wider adoption.
Digital Infrastructure Remains a Constraint
Realising these productivity gains will require investment in the foundations needed to deploy AI effectively.
The World Bank Group identifies reliable electricity, internet connectivity, usable data and digital skills as essential conditions for expanding access to AI.
These requirements present a challenge for developing countries where gaps in infrastructure and digital capabilities can limit the adoption of new technologies, particularly among smaller businesses and communities outside major urban centres.
Without improvements in these areas, the benefits of AI could remain concentrated among businesses and individuals who already have access to reliable connectivity, technology and skilled workers.
Trust and accountability are also important to wider adoption. The Bank highlights the need for safeguards covering privacy, security, transparency and accountability, while recommending that governments with limited regulatory capacity begin with voluntary standards and existing regulations.
Such measures could help encourage responsible adoption without creating unnecessary barriers to experimentation and innovation.
World Bank Targets 1 Billion People by 2030
The World Bank Group has set an ambition to reach 1 billion people by 2030 through expanded digital access and digitally enabled services.
The target comprises 600 million people using broadband internet and another 400 million using digitally enabled services.
The ambition reflects the importance of digital inclusion in expanding access to economic opportunities and enabling more people to benefit from technological advances.
With a large generation of young people approaching working age, investments in digital infrastructure, workforce capabilities and responsible technology adoption could help businesses become more competitive and broaden participation in the digital economy.
