The World Bank has advised developing countries to stop trying to compete with advanced economies in building massive artificial intelligence (AI) models and expensive data centres, urging them instead to focus on adopting affordable AI solutions tailored to local needs.
The recommendation is contained in the World Development Report 2026: The Promise of Artificial Intelligence, released on Tuesday.
According to the report, although developing economies are experiencing their weakest average growth in three decades, AI presents a significant opportunity to accelerate economic growth before the end of the decade.
Indermit Gill, World Bank’s Senior Vice President and Chief Economist,said developing countries do not need to build frontier AI models or invest heavily in large-scale computing infrastructure to benefit from artificial intelligence.
Instead, he urged governments to deploy smaller, low-cost AI tools that address local challenges in critical sectors such as healthcare, education, agriculture and justice. “AI has thrown developing economies a lifeline, and they should seize it. They do not need large models or big data centres to reap its benefits,” Gill said. “By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions.”
However, Gill warned that countries must act quickly because AI is spreading faster than previous transformative technologies such as electricity and the internet.
The report’s Director, Gaurav Nayyar, said the opportunity presented by AI is too important to ignore, but success will depend on countries making the right investments now.
According to him, governments should prioritise reliable electricity, digital connectivity, skills development and strong institutions to create an environment where AI can flourish. “AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations. Developing countries that build the foundations now, power, connectivity, skills and institutions, will be positioned to adopt and adapt AI for their people,” Nayyar said.
Contrary to widespread concerns that AI will eliminate millions of jobs, the World Bank said workers in developing economies face a much lower risk of automation than those in wealthier countries.
The report estimates that 16.2 per cent of jobs in developing economies could experience significant productivity gains from AI, compared with 18.7 per cent in high-income countries.
Rather than replacing workers, the technology is expected to enhance productivity by helping employees perform their tasks more efficiently.
The World Bank’s recommendations come amid growing calls for Nigeria to establish stronger regulatory and institutional frameworks to maximise the benefits of artificial intelligence.
Speaking at the AI Summit 2026 in Lagos last month, CarbonAI Founder and Chief Executive Officer, Debola Ibiyode, warned that Nigeria could miss the economic opportunities created by AI if it fails to develop appropriate governance structures.
She argued that effective regulation should be viewed as an enabler, not an obstacle to innovation, adding that responsible AI governance is essential to building public trust and ensuring sustainable growth.
Her views align with the World Bank’s assessment that institutions will play a decisive role in determining whether developing economies can fully harness AI.
