World Bank: AI can compress a century of development into a decade

The World Bank released a report arguing that artificial intelligence offers developing economies a historic opportunity to compress a century of progress into a single decade. Chief economist Indermit Gill said AI has thrown these nations a lifeline, but they must move quickly on electricity access, internet connectivity, and digital skills. The report emphasizes that emerging economies don't need massive data centers or bespoke large language models. Instead, adapting small, low-cost AI tools to local conditions can deliver better medical care, education, judicial services, and agricultural guidance to millions. Health workers could speed diagnoses, teachers could improve lesson plans, and farmers could decide what to plant and when.

On job displacement, the report finds developing economies have more to gain and less to fear than richer nations. Generative AI threatens 14.2% of jobs in high-income countries but only 4.5% in low- and middle-income countries. Meanwhile, the share of jobs expected to see meaningful productivity gains is similar: 16.2% in developing economies versus 18.7% in rich ones. The International Monetary Fund estimates AI could boost Sub-Saharan Africa's economy by about 4% over the next decade under the right conditions. However, the report cautions that AI could also bring greater income inequality, stealthier misinformation, and political repression. Governments must improve infrastructure and expand access to smartphones, or risk paying the price of missing out—just as they did with the first Industrial Revolution, according to Gill.