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The World Bank has called on Nigeria and other developing economies to accelerate the adoption of artificial intelligence (AI), saying the technology has the potential to compress decades of economic progress into a much shorter timeframe if countries invest in the right digital foundations.
The recommendation is contained in the World Development Report 2026: The Promise of Artificial Intelligence, released by the World Bank, which highlights AI as a transformative tool capable of driving productivity, strengthening public services and supporting sustainable economic development across emerging markets.
According to the report, developing countries are experiencing their weakest average economic growth in more than three decades, making artificial intelligence a strategic opportunity to stimulate innovation, improve efficiency and enhance competitiveness. However, the Bank stressed that the benefits of AI will depend on governments’ ability to expand reliable electricity, improve internet connectivity, strengthen digital infrastructure, develop digital skills and build effective institutional and regulatory frameworks.
AI expected to complement workers, not replace them
The report noted that concerns over job displacement are likely to be more pronounced in advanced economies than in developing countries.
It estimates that only 4.5 per cent of existing jobs in low- and middle-income countries are exposed to automation through generative AI, compared with 14.2 per cent in high-income economies.
Conversely, developing economies stand to benefit significantly from AI-driven productivity gains. The World Bank projects that approximately 16.2 per cent of jobs in these countries could experience meaningful productivity improvements, a figure close to the 18.7 per cent expected in advanced economies.
The report emphasised that AI’s greatest value for emerging economies lies in enhancing human productivity rather than replacing workers, enabling businesses and public institutions to deliver better outcomes with greater efficiency.
Low-cost AI solutions can drive inclusive development
Senior Vice President and Chief Economist of the World Bank Group, Indermit Gill, said developing economies have a unique opportunity to harness affordable AI technologies without first investing in expensive computing infrastructure or developing large-scale AI models.
According to Gill, adapting smaller and lower-cost AI solutions to local needs could significantly improve healthcare delivery, education, agriculture, judicial services and other critical sectors that support inclusive economic growth.
He noted that artificial intelligence is spreading more rapidly than previous technological revolutions such as electricity and the internet, making early adoption increasingly important for countries seeking to remain competitive.
AI offers opportunities across public and private sectors
The report described AI as a practical tool already helping governments and businesses improve decision-making, analyse complex datasets, strengthen forecasting capabilities and deliver public services more efficiently.
The World Bank identified several areas where AI can create significant impact, including:
- Improving healthcare diagnostics and patient care.
- Supporting farmers with data-driven agricultural insights.
- Enhancing business productivity and operational efficiency.
- Strengthening tax administration and regulatory reporting.
- Improving disaster response and emergency planning.
- Expanding access to quality education and public services.
The report noted that these applications could help governments improve governance, regulatory compliance and service delivery while supporting broader digital transformation initiatives.
World Bank warns of widening inequality without strong policy frameworks
Despite AI’s significant promise, the World Bank cautioned that the technology could widen existing development gaps if countries fail to establish the necessary infrastructure and governance systems.
According to the report, many developing economies continue to face challenges including unreliable electricity, limited broadband access, inadequate digital skills, poor data availability and weak institutional capacity.
Without deliberate policy action, the Bank warned that AI could concentrate economic power, widen inequalities, weaken public trust and create new risks relating to data privacy, digital rights and responsible technology governance.
To mitigate these risks, the report recommends a phased strategy that encourages countries to first adopt existing AI technologies, adapt them to local economic and regulatory requirements, and gradually build the capabilities required to develop more advanced AI systems over time.
Building AI-ready economies
Director of the World Development Report 2026, Gaurav Nayyar, said countries that invest early in digital infrastructure, skills development, governance and innovation ecosystems will be better positioned to unlock the long-term benefits of artificial intelligence.
For Nigeria and other African economies, the report reinforces the importance of strengthening digital infrastructure, promoting responsible AI governance, enhancing regulatory compliance frameworks and investing in digital capacity as part of broader efforts to accelerate economic growth and build resilient, technology-driven economies.
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