World Bank Urges Developing Countries to Rapidly Adopt AI to Accelerate Growth Amid Weak Economic Outlook

Aug 4, 2026

On August 4, 2026, the World Bank urged developing countries to adopt small, low-cost AI tools to counter their weakest economic growth in 30 years. While generative AI threatens 14.2% of jobs in rich nations, it risks only 4.5% in developing economies, where it could boost productivity. However, severe infrastructure and skills gaps—such as nearly one-third of rural Sub-Saharan African schools lacking electricity—threaten to widen global inequalities if left unaddressed.

World Bank AI adoption recommendation

▪The World Bank released its "World Development Report 2026: The Promise of Artificial Intelligence" on August 4, 2026, urging developing countries to adopt artificial intelligence.
▪The World Bank recommends that developing countries adapt small, low-cost artificial intelligence tools to local conditions rather than building large data centers or models.
▪The World Bank proposes a three-step path for developing countries: adopt available artificial intelligence tools, adapt them to local conditions, and advance toward frontier development.

Developing economies weak growth outlook

▪Developing economies are currently experiencing their weakest average economic growth performance in three decades.
▪The World Bank estimates that artificial intelligence could significantly boost the economic performance of developing countries before the end of the 2020s.

AI healthcare applications

▪Artificial intelligence tools can assist healthcare workers and nurses in developing countries by speeding up diagnoses and reading medical scans.
▪Adapting small, low-cost artificial intelligence tools can improve access to healthcare and medical care for millions of people in developing countries.

AI education applications

▪Artificial intelligence can help teachers in developing countries improve lesson plans and prepare educational materials.
▪Small, low-cost artificial intelligence tools can improve educational outcomes and access to education in developing countries.

Infrastructure barriers

▪As of 2024, nearly one-third of rural schools in Sub-Saharan Africa lacked reliable access to electricity, and more than two-thirds lacked dependable internet access.
▪Developing countries face significant infrastructure barriers to artificial intelligence adoption, including gaps in electricity access and internet connectivity.

Skills gaps

▪In Sub-Saharan Africa, 89% of 10-year-olds could not read and understand simple text as of 2024, highlighting foundational skills gaps.
▪The World Bank highlights that gaps in digital skills and institutional capacity threaten to prevent developing countries from successfully adopting artificial intelligence.