The World Bank has urged developing countries to adopt artificial intelligence (AI) technologies or risk falling further behind economically, saying AI offers a rare opportunity to improve governance and expand access to essential public services.
According to a report by AFP, published by Channels Television, the World Bank made the call on Tuesday during the launch of its annual World Development Report.
World Bank Group Chief Economist Indermit Gill said AI provides developing economies with a critical opportunity to accelerate growth despite years of economic setbacks.
“AI has thrown developing economies a lifeline, and they should seize it,” Gill said.
He stressed that lower-income countries do not need expensive large language models or massive data centres to benefit from AI. Instead, governments should focus on adapting affordable AI tools to local needs, particularly in healthcare, education, agriculture and the justice system.
The report comes as many developing economies continue to struggle after a series of global shocks. Earlier this year, the World Bank described the 2020s as a “lost decade” for economic growth in lower-income countries. It also recently cut its 2026 global growth forecast following the economic fallout from the Iran war, with Asia among the hardest-hit regions.
To maximise AI’s benefits, the report recommends that governments invest in reliable electricity, improved internet infrastructure, greater computing capacity and better access to locally relevant data.
World Development Report Director Gaurav Nayyar said countries must act quickly.
“The window to get this right is narrow. AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations.”
The report highlighted successful examples of AI already being used in developing countries, including improving diabetes screening in Bangladesh and helping Indian farmers reduce costs through advanced weather forecasting.
It also emphasised that AI solutions must be designed for local realities. For example, services should work through voice calls on basic mobile phones for people without smartphones or literacy skills.
Despite its optimism, the World Bank warned that AI also poses significant risks if poorly managed. The report said AI could widen inequality between and within countries, concentrate market power, weaken trust in public institutions and create new threats to privacy, safety and social cohesion.
While AI currently poses limited risks to employment in developing nations, the report warned that over time automation could eliminate many middle-income jobs that support economic mobility.
The World Bank also called on policymakers to strengthen public trust by ensuring AI systems remain transparent, fair and protect citizens’ data.
The report disclosed that it was prepared with assistance from advanced AI tools developed by OpenAI, DeepSeek, Google and Anthropic.
