Impoverished nations might achieve a century's worth of growth in just ten years by using modest, inexpensive localised technologies, according to the World Bank's recently published World Growth Report 2026: Decoding AI.
The World Bank Group's Chief Economist, Indermit Gill, emphasised that since emerging economies are experiencing their lowest average economic growth in 30 years, this technology is an essential "lifeline" that they cannot afford to overlook, as reported by Reuters.
According to the paper, developing economies have more to gain and less to fear than wealthier countries, and job losses brought on by AI pose less of a threat to them.
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According to the study, generative AI is three times more likely to endanger jobs in wealthy nations, where 14.2% of jobs are at risk, than in low- and middle-income nations, where 4.5% of jobs are.
A comparable percentage of jobs—16.2% in developing economies and 18.7% in high-income nations—are anticipated to gain from significant productivity advances.
According to the report, governments need to increase access to smartphones and computers, enhance digital skills, and improve electricity and internet connectivity.
However, it cautioned that AI might lead to "greater income inequality, stealthier misinformation, and political repression."
The World Bank further claimed that the consequences of missing out would be dire, though.
"Today's developing economies missed the first Industrial Revolution and spent the next two centuries paying the price," Gill stated. "They cannot afford to miss this one."
"AI has thrown developing economies a lifeline, and they should seize it," Gill stated in a statement that went with the research.
Governments are rushing to make sure their countries profit from the anticipated AI revolution, while businesses around the world are investing billions to capitalise on it.
Building power-hungry data centres and locating the energy sources to support them will be a difficulty for many businesses and nations. However, Gill asserted that large-scale resources and customised language models are not necessary for emerging economies to gain.
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"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," Gill stated.
AI might be used by medical professionals to expedite diagnosis, educators to enhance lesson planning, and farmers to decide what to sow and when.
According to the International Monetary Fund, under the correct conditions, AI might increase Sub-Saharan Africa's GDP by almost 4% over the next ten years.
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