Developing nations like India have a rare opportunity to leapfrog decades of economic growth through artificial intelligence. According to the World Bank’s World Development Report 2026. The Promise of Artificial Intelligence, AI could help developing countries accomplish in a single decade what previously required an entire century.
The report shows that jobs in wealthy, high-income countries face more than three times the automation risk of jobs in developing nations. Only 4.5% of existing jobs in low- and middle-income countries are at risk of automation from generative AI, compared to 14.2% in rich economies.
AI Will Augment Workers, Not Replace Them
The World Bank emphasizes that AI’s primary benefit for developing economies lies in boosting what workers can do. About 16.2% of jobs in developing countries could see significant productivity gains from AI. That figure is remarkably close to the 18.7% projected for high-income nations.
Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group, urged developing nations to grab this chance.
“AI has thrown developing economies a lifeline, and they should seize it,” Gill said. “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.”
Fix the Basics Before Chasing Advanced AI
Despite the huge potential, the gains are far from guaranteed. Many developing nations still lack basic infrastructure, including reliable power, high-speed internet, skilled workers, quality datasets, and strong institutions.
Without these fundamentals, AI could widen the gap between rich and poor nations. To avoid this, the World Bank recommends a three-step strategy:
- Adopt existing, affordable AI tools already available.
- Adapt those tools to local languages, contexts, and specific sector needs.
- Advance toward building custom frontier AI models over time.
Gaurav Nayyar, Director of the World Development Report 2026, warned that trying to replicate complex AI systems too early could prove expensive and ineffective.
What This Means for India
The World Bank’s findings closely match India’s current tech vision. Rather than spending billions on massive data centers, India is deploying smaller AI models tailored to local languages across healthcare, agriculture, and public administration.
Indian IT Secretary S. Krishnan noted that AI should enhance human capabilities while keeping humans in the loop. With smart deployment and foundational investments, AI can help propel India toward its long-term goal of becoming a fully developed nation.
Rather than focusing on building massive AI models or investing heavily in data centres, developing countries could see meaningful benefits by deploying smaller, lower-cost AI systems tailored to local languages and local needs, the World Bank said.
AI adoption is already gaining traction among businesses, it noted. In a survey cited by the report, about one in five firms with more than five employees across countries including India, Kenya, Mexico, Nigeria and Thailand said they had recently used AI chatbots in their operations.
However, the World Bank warns that governments should ensure AI is deployed responsibly. It said countries should encourage responsible AI practices, apply existing laws to address harms where necessary and build public trust by protecting privacy and preventing bias in AI-powered decision-making.
The World Bank’s findings also align with the Indian government’s broader thinking on AI. Speaking in New Delhi on Tuesday, IT Secretary S Krishnan said AI should enhance human capabilities rather than replace them, adding that humans must always remain “in the loop”.
He said AI could create new kinds of jobs, improve governance and help India move closer to its goal of becoming a developed nation over the next two decades.
Curated news reports, in-depth analysis, and special features by India’s Opinion editorial team.
