Follow Us on Google Discover
The World Bank has advised developing economies not to compete with advanced economies in building large models or data centres, saying they do not need that to harness the benefits of artificial intelligence.
The World Bank Group stated this in its World Development Report 2026: The Promise of Artificial Intelligence released on Tuesday.
According to the bank, developing economies are currently experiencing their weakest average growth performance in three decades, and AI could significantly boost that performance before the end of the 2020s.
What the World Bank is saying
World Bank Group Senior Vice President and Chief Economist Indermit Gill said developing countries do not need to build large AI models or data centres to benefit from the technology, but they must act urgently.
Also Read
- “AI has thrown developing economies a lifeline, and they should seize it. They do not need large models or big data centers to reap its benefits. 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 said in a statement accompanying the report.
- “But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet,” he added, noting that the report shows developing countries are already responding and succeeding in early applications.
Gaurav Nayyar, Director of the World Development Report 2026, also warned that the window to get AI adoption right is narrow and that foundational investments cannot be deferred.
- “AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations. Developing countries that build the foundations now- power, connectivity, skills, and institutions- will be positioned to adopt and adapt AI for their people,” Nayyar said.
The report itself finds that challenges the dominant narrative around AI and job displacement, showing that workers in developing countries face significantly lower automation risk than those in wealthier nations.
It says that 16.2% of jobs in developing economies could see productivity meaningfully boosted by AI, close to the 18.7% expected in high-income countries, suggesting the technology’s greatest promise for the developing world lies in amplifying what workers can do rather than replacing them.
More insights
Despite the economic potential of artificial intelligence as laid out by the World Bank, Nigeria has been warned that it could miss out on the gains from the technology if it fails to build the right regulatory and institutional foundations.
Last month, the Founder and Chief Executive Officer of CarbonAI, Debola Ibiyode, warned that Nigeria risks undermining the economic potential of AI if it fails to develop strong regulatory guardrails.
- Speaking at the AI Summit 2026 in Lagos, Ibiyode said AI presents significant opportunities for economic growth, but its long-term success depends on building public confidence through responsible regulation and what she described as “AI Diplomacy.”
She argued that regulation should not be viewed as a barrier to innovation but as an essential foundation for sustainable AI-driven growth.
Her comments align with the World Bank’s broader assessment that institutions will play a critical role in determining whether developing economies benefit from AI.
What you should know
A separate finding by the World Bank report shows that AI adoption among Nigerian formal businesses has accelerated sharply over the past three years.
The World Bank identified Nigeria and Kenya as examples of developing economies where businesses have rapidly increased their use of AI technologies.
The growth reflects the expanding accessibility of generative AI tools, which have become cheaper, easier to deploy and more practical for businesses seeking to improve productivity and streamline operations.
