World Bank: AI Offers Emerging Economies a Chance to Leapfrog Development

The World Bank has released a report suggesting that artificial intelligence (AI) could enable developing countries to achieve a century's worth of progress in just one decade. This potential leap forward hinges on swift action to address critical gaps in energy, connectivity, and workforce skills. The report indicates that emerging economies stand to gain more and fear less from AI than wealthier nations, with widespread job losses posing a lesser threat. Indermit Gill, the World Bank's chief economist, stated that AI presents a "lifeline" for developing economies, urging them to seize the opportunity. He emphasized that significant benefits can be realized without massive investments or complex, custom-built AI models. Instead, adapting smaller, low-cost AI tools to local conditions can improve healthcare, education, judicial services, and agricultural extension for millions. For instance, healthcare professionals could use AI for faster diagnoses, educators for enhanced lesson plans, and farmers for optimized planting decisions. The International Monetary Fund (IMF) estimates that AI could boost the Sub-Saharan African economy by approximately 4% over the next decade under favorable conditions. The report also highlights that generative AI is three times more likely to threaten jobs in rich countries (14.2% at risk) compared to low- and middle-income countries (4.5% at risk). Conversely, the proportion of jobs expected to see significant productivity gains is similar across regions. To capitalize on AI's potential, governments must improve access to electricity and the internet, enhance digital literacy, and broaden access to smartphones and computing devices. However, the World Bank also cautioned that AI could exacerbate income inequality, facilitate more sophisticated disinformation, and enable political repression. Gill warned that failing to engage with this technological shift could be costly, referencing the historical disadvantage faced by developing economies during the first Industrial Revolution.