Artificial intelligence (AI) could widen economic gaps between countries if developing economies fail to strengthen digital infrastructure, improve skills and build institutions capable of supporting the technology, the World Bank warned in its World Development Report 2026.
The report said while AI presents significant opportunities for developing countries, many economies remain unprepared to fully benefit from the technology due to limited access to electricity, reliable internet, computing power and quality data.
“Without deliberate action, AI could widen gaps between countries, increase inequality within them, concentrate market power, weaken trust in public institutions, and create new risks for safety, rights, and social cohesion,” the World Bank said.
The institution said the most advanced AI systems are currently being developed by a small number of countries and companies, creating a risk that economies with stronger technological capabilities could pull further ahead.
The report highlighted that many developing countries still face basic infrastructure challenges that could limit AI adoption. In Sub-Saharan Africa, nearly one-third of rural schools lack reliable electricity, while more than two-thirds lack dependable internet access.
The World Bank said closing these gaps would be critical for ensuring that AI benefits are broadly shared. Countries need to expand access to computing power, improve local data availability and develop digital skills that allow AI tools to be adapted to local needs.
The report also warned that weak institutional systems could increase the risks associated with AI adoption, including concerns around data privacy, biased decision-making and declining public trust.
Rather than attempting to immediately develop advanced AI systems, the World Bank advised developing economies to focus on building the foundations needed to use the technology effectively.
The report recommended that governments create conditions that allow businesses to test AI solutions, attract investment and scale successful innovations while strengthening systems for evaluating the impact of AI applications.
As developing economies continue to face weak growth conditions, the World Bank said the ability to prepare for the AI era could determine whether countries use the technology to reduce or deepen existing economic inequalities.
