Artificial Intelligence (AI) is rapidly transforming economies around the world, but a new World Bank analysis warns that many developing countries risk being left behind unless they strengthen their digital foundations and invest in technology readiness. The institution says AI has the potential to accelerate economic growth, improve public services, and create new opportunities, but the benefits will not be distributed equally without targeted investments.

According to the World Bank, AI is emerging as one of the most significant technological shifts of the modern era. From healthcare and education to agriculture and financial services, AI-powered tools are helping organizations improve efficiency and reach more people. In developing countries, these technologies could help address shortages of skilled workers, expand access to services, and support small businesses in increasing productivity.

However, the report emphasizes that many low-income nations currently lack the infrastructure required to fully benefit from the AI revolution. Reliable internet access, data centers, computing power, quality data, and digital skills remain limited in numerous regions. As a result, the technological gap between advanced and developing economies could widen if action is not taken soon.

The World Bank estimates that approximately 2.6 billion people worldwide still do not have internet access. In low-income countries, internet usage rates remain dramatically lower than those seen in wealthier nations. This digital divide limits access to online education, digital finance, e-commerce platforms, and emerging AI-based services.

Experts at the institution argue that countries should focus on four key pillars for AI readiness: connectivity, computing capacity, data availability, and workforce skills. Investments in these areas can help governments and businesses adopt AI solutions that address local challenges while supporting long-term economic growth.

The World Bank has also highlighted the promise of what it calls “small AI” solutions. Rather than relying solely on expensive large-scale systems, countries can deploy practical AI tools that help farmers improve crop yields, assist teachers in personalizing lessons, support healthcare workers in remote areas, and strengthen government service delivery. These targeted applications may provide immediate benefits while laying the groundwork for broader digital transformation.

At the same time, the institution warns that AI adoption must be accompanied by strong safeguards. Data privacy protections, cybersecurity measures, transparent governance, and responsible use policies will be essential to ensuring that technology benefits society without creating new risks.

Despite the challenges, the World Bank remains optimistic about the potential of AI to support development. With the right policies and investments, developing countries could use emerging technologies to improve productivity, create jobs, expand access to essential services, and strengthen economic resilience in an increasingly digital world. The coming years, experts say, may determine whether AI becomes a tool for reducing global inequality—or a force that deepens existing divides.