World Bank advises developing countries to invest in power, internet access to fully harness AI benefits

The World Bank Group says developing countries must invest in the foundational infrastructure — power, internet access, skills — to fully harness the benefits of artificial intelligence (AI).

The global bank said the technology could help developing countries achieve in a decade what would otherwise take a century, but warned that weak electricity supply, poor internet connectivity and skills shortages could prevent them from realising the technology’s full potential.

The advisory is contained in the organisation’s 2026 World Development Report on ‘The Promise of Artificial Intelligence’, released on Tuesday.

According to the report, while AI presents a significant opportunity to accelerate development, countries must invest in foundational infrastructure to fully harness its benefits.

The bank said only 4.5 percent of existing jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2 percent in high-income economies.

The Washington-based institution said 16.2 percent of jobs in developing countries could experience significant productivity gains from AI — close to the 18.7 percent projected for high-income countries.

The report said the greatest opportunity for developing economies lies in using AI to complement workers rather than replace them.

“AI has thrown developing economies a lifeline. They do not need large models or big data centres to reap its benefits,” Indermit Gill, the World Bank Group’s senior vice-president and chief economist, said.

“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.

“They must, however, hurry because AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet.”

The World Bank report also said AI is already helping governments, businesses, and individuals analyse information, improve forecasts, solve problems and deliver services at scale.

According to the report, AI can improve healthcare by assisting doctors in diagnosing patients, help farmers make better crop decisions, boost business productivity and strengthen public services — including tax administration, disaster response, education and social protection.

‘BENEFITS OF AI ARE NOT AUTOMATED’

The lender, however, said the benefits of AI are not automatic, noting that many developing countries still face shortages of reliable electricity, internet access, computing infrastructure, quality data, skilled workers, and strong institutions.

The World Bank warned that without deliberate policy action, AI could widen inequalities between and within countries, concentrate market power, weaken trust in public institutions, and create new risks for privacy, safety, and social cohesion.

The report recommended that developing countries adopt existing AI technologies, adapt them to local needs, and gradually build the capacity to develop frontier AI systems.

Gaurav Nayyar, the director of the World Development Report 2026, said the opportunity to benefit from AI would not remain open indefinitely.

“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations,” Nayyar said.

“Developing countries that build the foundations now — power, connectivity, skills and institutions — will be positioned to adopt and adapt AI for their people.”

The report also called for sustained investment in digital infrastructure, noting that nearly one-third of rural schools in sub-Saharan Africa lack reliable electricity, while more than two-thirds do not have dependable internet access.