By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
The High Street Journal
  • HOME
  • BUSINESS & ECONOMY
  • NEWS & UPDATES
  • WORK & CAREERS
    • THSJ Resources
  • LEGAL INSIGHTS
  • INNOVATION
  • OPINIONS
  • #STOPGALAMSEY
The High Street JournalThe High Street Journal
Search
  • HOME
  • BUSINESS & ECONOMY
  • NEWS & UPDATES
  • WORK & CAREERS
    • THSJ Resources
  • LEGAL INSIGHTS
  • INNOVATION
  • OPINIONS
  • #STOPGALAMSEY
Follow US
© 2024 | The High Street Journal. All Rights Reserved.
Global Perspectives & LeisureInnovation

World Bank Says AI Adoption Lags Productivity Potential in Europe and Central Asia

Fewer than one in 10 firms use AI, while infrastructure gaps and weak management limit gains

World Bank Says AI Adoption Lags Productivity Potential in Europe and Central Asia
Isaac Kofi Tsoenamawu
Oct 29, 2026

Artificial intelligence (AI) adoption is lagging its potential to boost productivity across Europe and Central Asia, with fewer than one in 10 firms using the technology in their operations despite growing exposure among workers, according to the World Bank.

Contents
  • Businesses struggle to translate AI into productivity
  • Computing infrastructure remains a major constraint
  • Job losses remain limited, but risks persist
  • Policy focus shifts to practical adoption

About 9.4% of firms with at least 10 employees in western parts of the region used AI in 2025, compared with almost 20% across the European Union, the bank said in its October 2026 Europe and Central Asia Economic Update. The report warns that businesses are struggling to move beyond basic applications that save time but have yet to deliver measurable productivity improvements.

The gap risks limiting the region’s ability to raise output as productivity growth slows and ageing populations reduce the supply of workers. The bank argues that the principal challenge is not simply access to AI technology, but whether companies have the management capabilities, skilled workers, usable data and computing infrastructure required to integrate it into core business operations.

Around one in five workers in the region holds a job meaningfully exposed to generative AI, with exposure highest among people with tertiary education and younger workers. The bank cautions, however, that exposure does not necessarily translate into job losses or the creation of new positions.

The findings highlight a gap between the rapid development of AI tools and the ability of businesses to use them to improve economic performance.

READ ALSO

MTN Bets On Broadband, Fibre And 5G To Strengthen Ghana’s Digital Economy
Ghana-Belarus Sports Deal Could Expand Investment in Coaching, Sports Science
Ghana’s Laptop Assembly Drive Faces Local Manufacturing Test

Businesses struggle to translate AI into productivity

Many companies in the region use AI for customer-service chatbots, internal knowledge assistance, administrative support and document preparation. In some cases, the technology has cut the time required for internal documentation from two weeks to a few hours, according to the report.

Yet these efficiency gains have generally not translated into measurable productivity improvements, suggesting that basic adoption alone may not deliver the broader economic benefits associated with the technology.

A smaller group of businesses has integrated AI into core operations, including financial institutions using it to assess loan applications, retailers making stock-replenishment decisions and energy companies optimising inputs.

These firms have generally addressed problems involving skills and data integration while focusing on applications with clear commercial returns, the bank said.

Management quality is among the strongest predictors of adoption. Companies need managers capable of identifying valuable applications, redesigning workflows and guiding employees through organisational changes, rather than simply purchasing access to AI models.

The report also identifies a shortage of business-oriented engineers and managers who can combine technical knowledge with operational decision-making. Although the region has substantial numbers of science, technology, engineering and mathematics graduates, gaps in foundational literacy and numeracy constrain adoption in parts of Central Asia.

Computing infrastructure remains a major constraint

The region’s limited computing capacity is another obstacle to wider AI deployment.

Data-centre capacity stood at about 2.1 megawatts per million people in 2025, compared with 31.6 megawatts in high-income economies outside Europe and Central Asia, according to the report. The region also hosts less than 1% of the world’s top 500 supercomputers.

Insufficient computing infrastructure can make intensive AI applications harder to deploy, while reliance on foreign providers raises concerns about costs and dependence on external technology companies.

The bank says the cost of capital and institutional credibility are major factors determining where data-centre investments are made. Cheap electricity alone has not been enough to attract large-scale computing infrastructure to countries that lack the financing conditions and investor confidence needed for capital-intensive projects.

Businesses also face difficulties integrating data held in separate systems, limiting the usefulness of AI models. Concerns about confidential information leaking into third-party systems, inaccurate outputs, uncertain returns and changing regulations further discourage companies from moving beyond experimentation.

Job losses remain limited, but risks persist

The report finds that early evidence of AI’s labour-market effects points more to changes in hiring and the tasks employees perform than to widespread dismissals.

In Romania, almost 91% of firms adopting AI reported no changes in hiring or layoffs as a result of the technology. In Türkiye, 2% of firms reported firing workers because of AI adoption, while 7% said they had hired workers for that reason.

Interviews with businesses also suggest that some employers have reduced hiring or reassigned existing workers rather than dismissing them.

However, the bank warns that limited aggregate employment effects can conceal significant losses in particular occupations, companies and regions. Knowledge-intensive business services could face substantial changes as routine tasks become automated and human work shifts towards supervision, quality assurance and handling exceptions.

The pace of disruption will depend partly on how quickly businesses adopt AI and how easily workers can move into complementary roles.

The bank argues that governments should establish retraining programmes, income support and effective labour-market institutions before major disruptions occur, rather than waiting until workers lose their jobs.

Policy focus shifts to practical adoption

The report recommends that governments prioritise the adoption and adaptation of existing AI technologies over costly efforts to develop advanced national models without a clear commercial purpose.

It calls for greater access to affordable computing resources, stronger foundational and digital skills, better management training and improved data integration. Governments can also support adoption by acting as customers for locally developed AI products and helping businesses overcome the initial costs of using the technology.

The bank says smaller AI models adapted to local languages, legal systems and business needs could be more useful than expensive efforts to compete directly with leading global developers.

For businesses, the priority is to identify applications that solve operational problems and generate measurable returns, rather than treating AI adoption as an objective in itself.

The report’s central warning is that the region faces a greater risk of adopting too little AI than too much. Without improvements in business capabilities, infrastructure and skills, the technology’s potential to offset labour shortages and revive productivity growth may remain largely unrealised.

Share this:

  • Share on X (Opens in new window) X
  • Share on Facebook (Opens in new window) Facebook

Like this:

Like Loading…

Related

Subscribe to Our Newsletter
Subscribe to our newsletter to get our newest articles instantly!
[mc4wp_form]
Share This Article
Facebook Whatsapp Whatsapp LinkedIn Email
Previous Article Court Dismisses Charles Bissue’s Bid to Block OSP Corruption Trial
Next Article Ghanaians Feel Financial Relief Again But Most Still One Crisis Away From Hardship Ghana’s Urban Population Reaches 58.7% as Demographic Shifts Reshape Economy
- Sponsored Content -
Ad imageAd image

LATEST NEWS

Ghanaians Feel Financial Relief Again But Most Still One Crisis Away From Hardship
Ghana’s Urban Population Reaches 58.7% as Demographic Shifts Reshape Economy
Business & Economy
Court Dismisses Charles Bissue’s Bid to Block OSP Corruption Trial
Legal Insights News
Ghana’s Life Expectancy Rises to 65 Years as Unemployment Falls to 12.8%
Business & Economy
Inside Ghana Stock Exchange's Historic 79% Rally & Oversubscribed IPOs: A Post-Crisis Revival
Inside Ghana Stock Exchange’s Historic 79% Rally & Oversubscribed IPOs: A Post-Crisis Revival
Business & Economy
Ghana Bauxite Company Secures US$250m Financing to Expand Mine Ahead of Refinery
Business & Economy

You May Also Like

MTN Wins Top Honours for Investor Relations at 2025 Extel Awards

MTN Wins Top Honours for Investor Relations at 2025 Extel Awards

Ghana Fintech Awards Opens Nominations For 2024

Canal+ Stake in MultiChoice Increased to 76.5%, Strengthening Hold on African Pay-TV Market

Canal+ Stake in MultiChoice Increased to 76.5%, Strengthening Hold on African Pay-TV Market

Trump’s Tariffs Push Global Exporters Toward China as US Consumers Face Higher Costs

Trump’s Tariffs Push Global Exporters Toward China as US Consumers Face Higher Costs

NCSAM 2025: Ghana to Ratify UN Cybercrime Treaty as Mahama Prioritizes Digital Security

NCSAM 2025: Ghana to Ratify UN Cybercrime Treaty as Mahama Prioritizes Digital Security

Gov’t Moves to Strengthen Science Reporting as Innovation Drive Gains Pace

Gov’t Moves to Strengthen Science Reporting as Innovation Drive Gains Pace

Winning the “Gen Z” Market: How Ghanaian Banks Are Adapting to a Digital Generation

Winning the “Gen Z” Market: How Ghanaian Banks Are Adapting to a Digital Generation

AfDB Steps Up Push to Attract Private Capital as Insurers, ECAs Gather in Rabat

AfDB Steps Up Push to Attract Private Capital as Insurers, ECAs Gather in Rabat

The High Street Journal

About Us

Delivering focused and insightful business perspectives; impacting lives.

Email: [email protected]

Useful Links

  • About
  • AI Strategy & Policy
  • Advertise
  • User Policy
  • Be a Guest Author
  • Contact Us
  • Sitemap

Stay Connected

© 2026 | The High Street Journal. All Rights Reserved.

%d