AI can redefine developing economies, but trust issues remain

This week has seen new announcements which have highlighted the benefits of the use of Artificial intelligence (AI).

The World Bank has said AI could allow developing countries to do in a decade what might otherwise take a century – provided that governments act swiftly to close the gaps in power, connectivity, skills, and institutional quality that threaten to leave them behind.

The Bank’s World Development Report 2026: The Promise of Artificial Intelligence found that jobs in high-income countries are more than three times as likely to be at risk of automation by generative AI than those in low- and middle-income countries, where 4.5% of existing jobs are at risk, compared with 14.2% in high-income countries. At the same time, 16.2% of jobs in developing economies could see productivity meaningfully boosted by AI – close to the 18.7% expected in high-income countries. The greatest promise for developing countries lies not in replacing workers, but in amplifying what they can do.

“AI has thrown developing economies a lifeline, and they should seize it”, said Indermit Gill, senior vice president and chief economist of the World Bank Group. “They do not need large models or big data centres 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. But they must hurry: AI is spreading faster and is more context-specific than earlier general-purpose technologies like electricity and the internet. World Development Report 2026 shows how developing countries are responding—and succeeding.”

The report added 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 report finds. The opportunity is not guaranteed, however. The most advanced AI systems are being built by a small number of countries and companies, while many developing economies still lack the power, internet access, data, skills, and institutions needed to use AI effectively. Without deliberate action, AI could widen gaps between countries, increase inequality within them, concentrate market power, weaken trust in public institutions, and create new risks for safety, rights, and social cohesion.

The report sets out a clear, three-step path: adopt available tools, adapt them to local conditions, and — over time — advance toward frontier AI development. This sequenced approach helps countries avoid costly and inefficient attempts to replicate advanced AI before the foundational conditions are in place.

“The window to get this right is narrow,” said Gaurav Nayyar, director of the World Development Report 2026. “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.”

The Bank concluded that building public trust is equally important. As AI evolves rapidly, governments should begin by drawing on voluntary industry standards to encourage responsible use, anchored in international cooperation to prevent regulatory fragmentation. When voluntary measures fall short, governments should apply existing laws to address harms directly. Improved public services and better learning outcomes in schools will reinforce trust – but if AI embeds bias in government decisions or erodes data privacy, that trust will be difficult to recover.

Jon Guy, Editor,

Emerging Risks

SHARE: