The World Bank Group is looking to narrow the artificial intelligence divide between advanced and developing economies by helping small businesses adopt practical, affordable AI tools, even as access to advanced AI remains constrained by infrastructure, skills and capital.
World Bank Group President Ajay Banga, in his address at the 2026 Annual Meetings plenary in Bangkok on October 16, said so-called small AI could help farmers improve yields, teachers personalise instruction, health workers make better-informed decisions and entrepreneurs reach new customers.
Unlike advanced AI models that require substantial computing power, energy, data and specialised skills, practical AI applications can offer developing economies a more accessible route to technological adoption, Banga said.
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The World Bank is working with countries to build the electricity supply, digital connectivity, device access and safeguards needed to deploy these tools. Skills development and stronger links between education, training and emerging industries will also be central to the effort.
The push comes as the World Bank seeks to address a widening employment challenge. Banga said 1.2 billion young people are expected to enter the job market over the next 10 to 15 years, while projections suggest only around 400 million jobs will be available.
Small businesses could play a crucial role in closing this gap, particularly in low-income, fragile and conflict-affected economies, where large companies often struggle to establish operations.
The World Bank's new strategy for micro, small and medium enterprises (MSMEs), launched earlier this week, aims to make these businesses more visible, connected, enabled and funded.
The plan includes using digital records to improve access to finance, connecting smaller firms with larger buyers and markets, and simplifying regulations that often prevent businesses from expanding.
Banga said small enterprises are especially important in fragile economies, where they can generate employment and help establish the foundations for stability.
The AI initiative forms part of a broader World Bank strategy to mobilise public finance, private investment, philanthropy and technology to support job creation.
Banga said the institution mobilised $112 billion in private capital last year, up from roughly $35 billion in fiscal 2022. However, mobilisation remained flat in low-income countries, where attracting commercial investment continues to be difficult.
The World Bank is also directing funding towards infrastructure, energy, agriculture, healthcare and manufacturing, sectors it considers critical to generating employment at scale.
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For developing economies, the challenge is not simply gaining access to AI technology, but creating the conditions for businesses to use it productively.
Banga's approach centres on combining digital tools with reliable electricity, connectivity, financing and workforce skills, allowing smaller enterprises to participate in economic growth rather than be left behind by the AI transition.
The World Bank's broader objective, he said, is to ensure technology makes development finance more effective and helps countries create jobs for the next generation.
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