Artificial intelligence (AI) is advancing at an unprecedented pace, reshaping how people learn, work, and live, and offering new avenues for economic transformation, job creation, and industrial innovation, the World Bank says in its latest Digital Progress and Trends Report 2025.
In the foreword to the report, Senior Managing Director Axel van Trotsenburg highlights AI’s potential to accelerate development, particularly in middle-income economies. “Ten of the 15 fastest-growing jobs globally are now technology or technology-enabled roles,” he notes. AI-related job postings are rising faster in these countries, up 16 percent in upper-middle-income and 11 percent in lower-middle-income nations compared to just 2 percent in high-income economies.
The report, titled Strengthening AI Foundations, presents a comprehensive snapshot of the global AI landscape, revealing both opportunities and stark inequalities. While most AI innovations remain concentrated in high-income countries, low- and middle-income nations are increasingly adopting “small AI” solutions localized, practical applications that address immediate needs. Van Trotsenburg stresses that continued investment in the broader AI ecosystem is essential for scaling these impacts over time.
To unlock AI’s transformative potential, governments must prioritize building what the World Bank calls the foundational “4Cs”:
- Connectivity – Ensuring reliable digital infrastructure, energy, and access to devices, which form the indispensable baseline for digital engagement.
- Compute – Investing in AI chips, servers, data centers, and cloud services, described as the “new electricity” of the AI era.
- Context – Developing locally relevant data and content to create trusted, inclusive, and effective AI systems.
- Competency – Cultivating robust digital skills, enabling citizens to adopt, adapt, and innovate with AI technologies.
The foreword underscores the pivotal role governments play in strengthening these foundations, ensuring that AI contributes to inclusive and sustainable development. The World Bank Group pledges to support countries in this effort, including through data governance, regulatory and institutional reforms, and human capital development.
Van Trotsenburg also highlights the importance of fostering dynamic local innovation ecosystems, aligning AI tools with local realities, and implementing policies that promote competition and equitable distribution of AI gains. “Small AI offers a unique opportunity to bypass traditional development barriers and spark homegrown innovation and inclusive growth,” he says.
The report concludes with a call for collective, strategic action. As the AI era accelerates, developing countries must expand access, close skill gaps, manage risks, and ensure that the benefits of AI reach everyone, helping to shape a future where AI becomes a force for shared prosperity rather than a driver of inequality.
