AI could boost developing economies, World Bank says

The World Bank urged developing countries on Tuesday to adopt artificial intelligence tools, saying AI could improve public services and boost weak economic growth if countries adapt the technology to local needs.

The call came as the organisation launched its annual World Development Report. Indermit Gill, chief economist of the World Bank Group, said developing economies did not need large AI models or big data centres to benefit from the technology, and could instead use lower-cost tools adapted for areas including health, education, justice and agriculture.

The World Bank said developing economies are in their weakest average growth performance in three decades. It said AI could significantly improve that performance before the end of the 2020s and help extend medical, legal, educational and agricultural services to underserved people.

The report said AI systems for low-income and developing countries would need to be adapted for the 6.8 billion people, or 83 percent of humanity, who live there. It gave examples including increased diabetes screening in Bangladesh and lower costs for Indian farmers through advanced weather forecasts.

Gaurav Nayyar, director of the report, said the window to act was narrow and called AI a rare chance to solve long-standing problems. The report also warned that AI could widen gaps between countries, increase inequality within countries, concentrate market power, weaken trust in public institutions and create risks for safety, rights and social cohesion.