As 1.2 billion young people in developing economies are expected to reach working age between 2025 and 2035, the World Bank Group is examining how practical, affordable artificial intelligence could help businesses grow, improve productivity and expand employment opportunities.

A Global Employment Challenge Is Approaching

The world is approaching a defining moment for employment, economic development and technological innovation. Over the next decade, approximately 1.2 billion young people in emerging-market and developing economies are expected to reach working age. Yet current projections suggest that only around 400 million jobs may be created over the same period, highlighting the scale of the challenge facing governments, businesses and development institutions.

The issue extends beyond unemployment figures. Access to productive work influences household incomes, poverty reduction, economic stability and the ability of young people to build independent futures.

For many developing countries, the central question is how to expand economic opportunities quickly enough to absorb a growing workforce while improving the quality and productivity of existing jobs.

Against this background, the World Bank Group is exploring whether small AI—practical and affordable artificial intelligence designed for specific needs—can help create more and better jobs.

The topic will be discussed at the World Bank Group’s Small AI: More and Better Jobs event during the 2026 Annual Meetings in Bangkok, Thailand. The event is scheduled for October 12 and will bring together international leaders and specialists to examine how artificial intelligence can contribute to employment and development.

What Is Small AI?

Artificial intelligence is often associated with powerful systems that require substantial computing resources, large datasets and expensive infrastructure. However, many useful applications do not need to operate at that scale.

Small AI refers broadly to practical, targeted AI applications that can be adapted to local languages, business requirements, available infrastructure and financial constraints.

Instead of attempting to solve every problem with a large general-purpose system, these tools focus on specific tasks. They may help a farmer understand crop conditions, enable a small business to manage its inventory, assist a healthcare worker with routine information or help a teacher prepare educational materials.

The approach is particularly relevant to developing economies, where access to reliable electricity, high-speed internet, specialised technical skills and advanced computing facilities can be uneven.

Affordable and locally appropriate tools could allow more organisations to use AI without making major investments in technology infrastructure.

However, accessibility alone will not guarantee success. AI applications must be reliable, secure, relevant to local needs and supported by adequate training.

How AI Could Help Create More Jobs

The relationship between artificial intelligence and employment is complex. Automation can reduce the time required for certain tasks, but new technologies can also help businesses expand, improve services and develop new products.

The employment impact will depend on how organisations adopt AI and whether productivity gains translate into business growth and additional hiring.

1. Supporting Small Businesses and Entrepreneurs

Small and medium-sized enterprises are important sources of employment in many developing economies. Yet many operate with limited access to finance, specialised expertise and advanced business tools.

Practical AI applications could help these businesses manage everyday operations more efficiently.

For example, AI-assisted systems could support inventory management, customer enquiries, bookkeeping, sales forecasting, translation and digital marketing. Entrepreneurs could use these tools to reduce administrative workloads and devote more time to customers and business development.

A small retailer might use an AI-enabled inventory system to identify fast-selling products and anticipate replenishment needs. A local manufacturer could use demand forecasting to plan production more effectively.

If these improvements help businesses increase sales and expand into new markets, they may create opportunities for additional workers.

Nevertheless, productivity gains do not automatically produce employment. Some businesses may use AI to complete existing tasks with fewer workers. Policies that improve access to finance, markets, skills and business development services will therefore remain important.

2. Improving Agricultural Productivity

Agriculture remains a major source of livelihoods across many developing countries, particularly in rural communities.

Farmers frequently face challenges involving weather uncertainty, crop diseases, water availability, fluctuating prices and limited access to agricultural advice.

Targeted AI tools could help address some of these problems by analysing weather forecasts, identifying potential crop diseases from images, providing farming guidance in local languages and helping producers interpret market information.

For smallholder farmers, mobile-based advisory services could make specialised information more accessible, provided that users have suitable devices, connectivity and trustworthy local data.

Improved productivity may help farmers increase their incomes and create demand for agricultural services, storage, transportation, food processing and distribution.

These connected activities can generate employment beyond the farm itself.

The benefits, however, will depend on affordability, local relevance and whether farmers can act on the information provided.

3. Expanding Access to Education and Skills

The changing labour market will require workers to develop new technical and professional capabilities.

AI-supported learning tools could help students practise new skills, receive feedback and access educational materials adapted to their level of understanding. They may also assist instructors with lesson preparation and routine administrative work.

For young people who cannot easily access specialised training, well-designed digital learning services could provide additional opportunities to develop skills relevant to local employers.

AI could also support vocational training in areas such as electrical work, manufacturing, logistics, agriculture and business management.

However, technology cannot replace the need for qualified teachers, practical training, recognised qualifications and employer participation. Reliable internet access, affordable devices and digital literacy will also influence who benefits.

4. Strengthening Healthcare Services

Healthcare is another area where targeted AI applications could improve service delivery.

Depending on local regulations and clinical safeguards, AI tools may assist with appointment scheduling, routine administrative work, health information management and the organisation of patient records.

These applications could help healthcare facilities use staff time more effectively and reduce some operational burdens.

In underserved communities, carefully designed digital systems may also help health workers access guidance and information when specialist support is difficult to obtain.

AI must not be treated as a substitute for qualified medical professionals. Privacy protection, clinical oversight, accuracy and accountability are essential, particularly when decisions could affect patients’ health.

Employment opportunities may emerge through the development, maintenance and delivery of digital health services, although the scale of these opportunities will depend on investment and implementation.

5. Making Public Services More Efficient

Governments can influence job creation through the quality of public services, infrastructure and business regulations.

AI tools could help public agencies organise information, process routine requests, identify administrative delays and make selected services easier to access.

More efficient public administration may reduce some of the costs businesses face when registering enterprises, obtaining permits or navigating government procedures.

If these improvements make it easier to establish and expand businesses, they could indirectly support employment.

However, governments must ensure that automated systems remain transparent, accessible and accountable. People who lack internet access or digital skills should not be excluded from essential public services.

Why Small AI May Matter More Than Technology Alone

The World Bank Group’s approach reflects a broader question about how developing economies can benefit from AI without depending entirely on the most expensive systems.

The opportunity lies not simply in introducing new technology but in applying it to problems that prevent people and businesses from becoming more productive.

For example, a digital tool may help a small enterprise improve customer service. Yet the business may still struggle to expand if it cannot obtain credit, access reliable electricity or transport goods to customers.

Similarly, an AI-powered agricultural advisory service may provide useful information, but farmers may be unable to increase production if irrigation, storage facilities or market connections are inadequate.

This means AI should be considered alongside infrastructure, education, private investment and effective institutions.

In its discussion of AI and development, the World Bank Group has emphasised the importance of closing gaps in electricity, connectivity, skills and institutional capacity so developing countries can make effective use of the technology.

The Risk of a Wider Digital Divide

Although small AI may lower some barriers to adoption, the benefits will not necessarily be distributed equally.

Businesses with better infrastructure, skilled employees and access to capital may adopt new technologies faster than smaller firms. Workers with digital skills may find it easier to benefit from AI-assisted jobs, while others could face difficulties adapting.

Language is another challenge. AI systems that perform well in widely represented languages may be less effective in languages with limited digital training data.

Poor-quality information, privacy breaches, biased outputs and dependence on technology providers can create further problems.

Governments, businesses and development institutions will need to address these risks through digital infrastructure, affordable training, data protection, responsible technology standards and support for underserved communities.

Workers should also have opportunities to learn how to use AI in their existing occupations rather than being expected to adapt without assistance.

What Governments and Businesses Need to Do

Creating employment at the scale required by the coming demographic shift will demand action beyond the technology sector.

First, invest in foundational infrastructure. Reliable electricity, internet connectivity, transport networks and digital systems help businesses operate and adopt new tools.

Second, strengthen education and practical skills. Young people need both foundational knowledge and occupational skills that enable them to work with evolving technologies.

Third, improve access to finance. Small businesses need capital to purchase equipment, adopt appropriate digital services and expand their operations.

Fourth, support private-sector growth. Clear regulations, competitive markets and an environment that encourages investment can help productive businesses develop and hire workers.

Fifth, encourage responsible AI adoption. Businesses and public agencies need safeguards for data, privacy, security and the treatment of workers.

Finally, governments should evaluate whether AI initiatives generate measurable improvements in productivity, income, service quality and employment. The number of AI tools deployed is not, by itself, evidence of successful development.

The World Bank Group’s October Discussion

The World Bank Group’s Small AI: More and Better Jobs event is part of the 2026 Annual Meetings programme, which brings together leaders and stakeholders to discuss development, economic growth, investment and employment.

The session will explore how practical AI applications can move beyond limited pilot projects and achieve wider real-world impact. The event page lists World Bank Group President Ajay Banga among the speakers, alongside other international leaders.

The discussion comes as developing economies face the dual challenge of creating opportunities for a large new generation of workers and improving productivity in existing industries.

Its central question is whether accessible, locally adapted AI can help businesses grow and make essential services more effective while contributing to more productive employment.

The outcome will depend not only on technological capabilities but also on the policies, investments and partnerships that support adoption.

Conclusion: Turning AI Potential into Employment Opportunities

The arrival of 1.2 billion young people at working age over the coming decade represents both a major employment challenge and an opportunity for economic development.

Small AI could contribute by helping entrepreneurs operate more efficiently, supporting farmers, improving education, strengthening selected healthcare services and making public administration more effective.

Yet technology cannot independently create the conditions required for widespread employment. Businesses need customers, infrastructure, finance and a supportive economic environment. Workers need relevant skills and access to opportunities.

The priority should therefore be to use AI where it addresses genuine constraints, improves productivity and supports sustainable business growth.