World Bank: AI Could Accelerate Development in Emerging Economies

Artificial intelligence could allow developing countries to achieve a century of progress in just a decade if they address gaps in power, connectivity, and digital skills, according to a World Bank report released on August 4. Indermit Gill, the chief economist of the World Bank, stated that AI offers a lifeline to emerging economies. He noted that these nations can benefit by adapting small, low cost AI tools to local conditions to improve agriculture, education, judicial services, and medical care.

The report found that emerging economies face a lower risk of job losses from AI compared to wealthier nations. Specifically, 4.5 percent of jobs are exposed in low and middle income countries, while 14.2 percent are at risk in rich countries. Conversely, the share of jobs expected to see meaningful productivity gains is similar, with 16.2 percent in developing economies and 18.7 percent in high income countries.

Despite the potential, the World Bank warned that AI could lead to political repression, stealthier misinformation, and increased income inequality. To mitigate these risks and avoid the costs of missing the AI revolution, the report urges governments to expand access to smartphones, computing devices, and electricity. The International Monetary Fund added that under the right circumstances, AI could boost the economy of Sub Saharan Africa by approximately 4 percent over the next ten years.