Artificial intelligence (AI) is unlikely to become a major threat to jobs in developing economies and could instead help boost productivity, improve public services and accelerate economic growth, the World Bank said in its World Development Report 2026.
The report said only 4.5% of existing jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2% in high-income economies. Instead of replacing workers, AI could help people perform tasks more efficiently and expand access to essential services.
The World Bank said about 16.2% of jobs in developing economies could see meaningful productivity gains from AI, close to the 18.7% expected in high-income countries.
“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group.
The report said developing countries do not need to immediately build expensive AI systems or large data centres to benefit from the technology. Instead, they should focus on adapting affordable AI tools to local needs in areas such as healthcare, education, agriculture and government services.
AI could help doctors diagnose patients, support farmers with better crop decisions, improve business operations and enable governments to strengthen tax collection, disaster response and social programmes, the report said.
However, the World Bank warned that countries that fail to invest in the foundations needed for AI adoption risk falling further behind. Key challenges include limited electricity access, weak internet connectivity, inadequate digital skills, poor data systems and institutional gaps.
In Sub-Saharan Africa, nearly one-third of rural schools still lack reliable electricity, while more than two-thirds do not have dependable internet access, the report said.
The World Bank recommended that developing economies follow a three-stage approach: first adopting existing AI tools, then adapting them to local conditions, and eventually building capacity to develop advanced AI technologies.
The report comes as developing economies face their weakest average growth performance in three decades. The World Bank said AI could help improve economic performance before the end of the 2020s if countries move quickly to build the necessary infrastructure and skills.
It also cautioned that governments must ensure responsible AI use by protecting data privacy, preventing bias and maintaining public trust as the technology expands.
For developing economies, the report said the biggest opportunity lies not in replacing workers with machines but in using AI to help people, businesses and governments achieve more.
