Developing countries, including Kenya, stand to gain more from artificial intelligence than they stand to lose, a report by the World Bank now indicates.
Technology is expected to boost worker productivity, create new economic opportunities and help governments improve public services despite a period of weak global growth.
The World Development Report 2026: The Promise of Artificial Intelligence, says fears that AI will wipe out jobs in poorer countries are largely misplaced.
Instead, workers in developing economies are less exposed to automation than those in richer nations, while millions could become significantly more productive through the use of AI tools.
According to the report, only 4.5 per cent of jobs in low- and middle-income countries are at risk of automation from generative AI, compared with 14.2 per cent in high-income economies.
At the same time, 16.2 per cent of jobs in developing countries could experience meaningful productivity gains from AI, only slightly below the 18.7 per cent projected for advanced economies.
The findings come as many developing economies grapple with their weakest average growth performance in three decades, raising hopes that AI could become a catalyst for faster economic expansion before the end of the decade.
“AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, senior vice president and chief economist of the World Bank Group.
“They do not need large models or massive data centres to reap its benefits. By adapting small, low-cost AI tools to local conditions, they can bring better healthcare, education, judicial services and agricultural extension within reach of millions.”
The report says AI’s greatest potential in developing countries lies in enhancing workers’ capabilities rather than replacing them.
Doctors could use AI to improve diagnosis, farmers could receive better crop recommendations, teachers could personalise learning, while small businesses could automate routine tasks and improve efficiency without reducing employment.
Governments are also expected to benefit through improved tax administration, disaster response, healthcare delivery, education and targeting of social protection programmes.
However, the World Bank warns that the opportunity could be lost unless governments urgently invest in reliable electricity, internet connectivity, digital infrastructure, computing capacity and workforce skills.
Many developing countries still lack the foundations needed to benefit fully from AI. In Sub-Saharan Africa, nearly one-third of rural schools lack reliable electricity while more than two-thirds have no dependable internet connection.
“The window to get this right is narrow,” said Gaurav Nayyar, director of the World Development Report 2026.
“AI presents a once-in-a-lifetime opportunity to solve problems that have resisted solutions for generations. Developing countries that build the foundations now will be positioned to adopt and adapt AI for their people.”
The report recommends a phased strategy in which countries first adopt existing AI technologies, adapt them to local needs and only later develop advanced AI capabilities.
It also urges governments to expand access to computing power, improve the availability of local-language data and establish governance frameworks that promote responsible AI use while protecting privacy and public trust.
World Bank said initiatives such as Mission 300, which aims to provide electricity access to 300 million people across Sub-Saharan Africa by 2030, will be critical in laying the digital foundations needed for AI-driven economic transformation.
For developing economies, the report notes that AI represents a rare opportunity to accelerate development in years rather than generations, provided governments move quickly to build the infrastructure, skills and institutions needed to harness the technology.
