The World Bank has urged developing countries to embrace artificial intelligence (AI) tools to improve governance and public services, warning that nations that fail to adopt the technology risk being left behind.
The bank’s Chief Economist, Indermit Gill, made the call on Tuesday as the organisation launched its annual World Development Report.
Gill described AI as a major opportunity for developing economies, particularly those struggling with weak economic growth and limited access to essential services.
“AI has thrown developing economies a lifeline, and they should seize it,” he said.
He stressed that developing countries did not need to build expensive large-scale AI models or data centres to benefit from the technology, urging governments instead to adapt lower-cost AI solutions to local needs.
According to him, AI could help improve the delivery of services in critical sectors including healthcare, education, justice and agriculture.
Advanced AI models, many of which have been developed in the United States and China, can analyse large amounts of information and automate tasks that would otherwise require significant human expertise and time.
However, the World Bank noted that such advanced systems often require massive data centres and substantial computing power, which consume large quantities of electricity and water and have environmental implications.
In a statement accompanying the report, the bank said developing economies were experiencing their weakest average growth performance in three decades, but AI could help significantly improve economic outcomes before the end of the 2020s.
The report recommended using AI to extend expensive medical, legal, educational and agricultural services to underserved populations, potentially accelerating development that could otherwise take decades or even generations.
The World Bank said lower-income countries had faced a series of economic shocks during the 2020s, contributing to what it previously described as a “lost decade” for economic growth.
It called on developing nations to begin adopting locally relevant AI tools while simultaneously investing in electricity generation and distribution, expanding access to computing infrastructure and improving the availability of local data.
Gaurav Nayyar, director of the report, warned that countries had a limited opportunity to get their AI strategies right.
“The window to get this right is narrow. AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations,” he said.
The report also stressed that AI solutions must be designed around the realities of people in developing economies rather than simply imported from advanced markets.
“For example, AI solutions will need to be delivered through voice calls on basic mobile phones for those who cannot read or afford smartphones,” the report stated.
It cautioned that importing an AI model does not automatically guarantee that it will perform effectively in a local environment.
The report itself was developed with assistance from several leading AI tools, including technologies from OpenAI, DeepSeek, Google and Anthropic, according to a disclosure.
The World Bank said the adoption of appropriate AI technologies, combined with investment in infrastructure and local capabilities, could help developing countries improve public services and accelerate economic development.
