The World Bank has called on developing countries to embrace artificial intelligence (AI) to improve governance and public service delivery, saying they risk being left behind if they fail to adopt the technology.
The call was made on Tuesday as the institution launched its annual World Development Report.
"AI has thrown developing economies a lifeline, and they should seize it," World Bank Group Chief Economist Indermit Gill said.
"They do not need large models or big data centres to reap its benefits," he added, urging countries to adapt lower-cost AI tools to local conditions for use in health, education, justice and agriculture.
According to the World Bank, advanced AI models developed largely in the United States and China require extensive computing power, large data centres, and significant electricity and water resources. However, it said developing economies can benefit from more affordable, localised AI solutions.
"Developing economies today are in the midst of their weakest average growth performance in three decades. AI could significantly boost that performance before the end of the 2020s while delivering tangible benefits to people," the accompanying statement said.
The report recommends using AI to expand access to medical, legal, educational and agricultural services for underserved populations.
It also urges governments to invest in electricity generation and distribution, improve access to computing power, increase the availability of local data and begin deploying local AI solutions.
"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," said the report's director, Gaurav Nayyar.
The report noted that AI tools would need to be adapted for the 6.8 billion people living in low-income and developing countries, including delivery through voice calls on basic mobile phones for people who cannot read or afford smartphones.
It cited examples of AI being used to increase diabetes screening in Bangladesh and reduce costs for farmers in India through improved weather forecasting.
The World Bank also warned policymakers to build public trust as AI adoption expands, cautioning that bias in government decision-making or weak data privacy protections could undermine confidence in public institutions.
The report further warned that AI could widen gaps between countries, increase inequality, concentrate market power, weaken trust in institutions and create new risks for safety, rights and social cohesion.
While it said the immediate risks to employment in developing countries remain low, it warned that widespread AI adoption could eventually reduce economic mobility by eliminating many middle-class jobs.
