Key points
- The World Bank says AI could help developing countries achieve in a decade what might otherwise take a century.
- Nigeria and other developing economies are urged to invest in electricity, internet access, digital skills and strong institutions to unlock AI’s potential.
- The report finds only 4.5% of jobs in developing countries are at high risk of automation, compared with 14.2% in high-income economies.
- AI is projected to improve productivity in 16.2% of jobs in developing economies.
- The World Bank warns that failure to adopt AI strategically could widen inequality and deepen development gaps.
Main Story
The World Bank has called on Nigeria and other developing economies to accelerate the adoption of artificial intelligence (AI), saying the technology offers an unprecedented opportunity to fast-track economic growth, improve public services and enhance productivity.
The recommendation is contained in the World Development Report 2026: The Promise of Artificial Intelligence, released on Monday, which examines the opportunities and risks AI presents for developing countries.
According to the report, developing economies are experiencing their weakest average economic growth in three decades, making AI a critical tool for boosting productivity and improving living standards. However, the World Bank stressed that countries must urgently address deficits in electricity supply, internet connectivity, digital infrastructure, human capital and institutional capacity to fully benefit from the technology.
The report notes that AI poses a lower risk of large-scale job displacement in developing economies than in advanced nations. It estimates that only 4.5 per cent of existing jobs in low- and middle-income countries are vulnerable to automation through generative AI, compared with 14.2 per cent in high-income economies.
Rather than replacing workers, the report argues that AI is more likely to complement labour in developing countries, with 16.2 per cent of jobs expected to experience meaningful productivity improvements—close to the 18.7 per cent projected for advanced economies.
The World Bank said governments and businesses are already deploying AI to analyse data, improve decision-making, enhance public service delivery and strengthen productivity across sectors.
It highlighted the technology’s potential to improve healthcare through better disease diagnosis, support farmers with smarter agricultural advisory services, strengthen tax administration, improve disaster response, enhance education and expand access to social services.
The report, however, warned that the benefits of AI will not be evenly distributed unless governments take deliberate action to close digital and institutional gaps.
It noted that the world’s most advanced AI technologies are currently concentrated in a handful of countries and companies, while many developing economies continue to face unreliable electricity, weak internet infrastructure, inadequate digital skills and limited access to quality data.
The Issues
Inadequate electricity supply remains a major obstacle to large-scale AI adoption in many developing economies.
Poor internet connectivity and digital infrastructure continue to limit access to AI-powered services.
Shortages of digital skills and AI expertise could slow technology adoption across key sectors.
Failure to adopt AI strategically may widen inequality between developed and developing countries.
Concentration of AI development among a few global companies raises concerns about market dominance, public trust, data governance and digital sovereignty.
What’s Being Said
Indermit Gill, Senior Vice President and Chief Economist, World Bank Group
“AI has thrown developing economies a lifeline, and they should seize it. They do not need large models or big data centres to reap its benefits. By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions.”
“But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet. World Development Report 2026 shows how developing countries are responding and succeeding.”
Gaurav Nayyar, Director, World Development Report 2026
“Countries that invest in the right foundations now will be better positioned to benefit from artificial intelligence.”
What’s Next
The World Bank is encouraging developing countries to adopt a phased AI strategy by first deploying existing AI tools, adapting them to local needs and gradually advancing towards more sophisticated AI capabilities as digital infrastructure, skills and institutional capacity improve.
Governments are also expected to prioritise investments in electricity, broadband connectivity, digital education and regulatory frameworks to ensure AI delivers inclusive economic growth while minimising risks.
Bottom Line
The World Bank believes artificial intelligence offers Nigeria and other developing economies a unique opportunity to accelerate development, improve public services and boost productivity. However, realising these gains will depend on how quickly countries strengthen the infrastructure, skills and institutions needed to support widespread AI adoption.
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