Developing countries such as India have less to fear from artificial intelligence (AI) than advanced economies and could benefit significantly if they adopt the technology strategically, according to the World Bank's World Development Report 2026. The report states that AI is more likely to enhance productivity than replace jobs in low- and middle-income countries, offering an opportunity to accelerate economic growth and improve the delivery of public services.

According to the report, only 4.5 per cent of existing jobs in low- and middle-income countries are at risk of automation by generative AI, compared with 14.2 per cent in high-income economies. At the same time, AI could meaningfully improve productivity in 16.2 per cent of jobs in developing countries, close to the 18.7 per cent projected for wealthier nations. The World Bank said the greatest potential of AI lies in augmenting human capabilities rather than replacing workers, particularly in sectors such as healthcare, agriculture, education and public administration.

World Bank Group Senior Vice President and Chief Economist Indermit Gill said developing economies do not need to build large AI models or invest heavily in massive data centres to benefit from the technology. Instead, he suggested that countries focus on deploying smaller, cost-effective AI tools tailored to local languages and conditions. The report noted that such systems could expand access to medical care, education, judicial services and agricultural support while helping countries achieve developmental progress at a much faster pace.

Also Read: OpenAI Doubles Bug Bounty Reward As Company Expands AI Safety Efforts

The report, however, cautioned that many developing nations still lack the infrastructure needed to fully harness AI. Challenges such as unreliable electricity, limited internet connectivity, shortages of skilled workers, poor-quality data and weak institutions could prevent countries from realising AI's full potential. To address these gaps, the World Bank recommended a phased strategy that prioritises adopting existing AI technologies, adapting them to local needs and only later investing in advanced AI capabilities. It warned that attempting to replicate cutting-edge AI systems too early could be both costly and ineffective.

The report also highlighted that AI is already being used across developing economies to improve medical diagnosis, support farmers, enhance business productivity and strengthen public services, including taxation, disaster response, healthcare and education. Its findings align with the Indian government's approach to AI. Speaking in New Delhi on Tuesday, Information Technology Secretary S. Krishnan said artificial intelligence should complement human capabilities rather than replace them, stressing that humans must remain "in the loop". He added that AI has the potential to create new employment opportunities, improve governance and support India's long-term goal of becoming a developed nation over the next two decades.

Also Read: Earthquake In India's Northeast: Magnitude 5.0 Tremors Hit Arunachal Pradesh's Shi Yomi