Ankara: The World Bank Group has spotlighted the potential of artificial intelligence (AI) as a transformative tool for developing economies, emphasizing the need for optimism and strategic preparation. Gaurav Nayyar, director of the World Bank Group's 2026 World Development Report, articulated that AI could serve as a pivotal factor in bridging development gaps, provided governments establish conducive environments.
According to Anadolu Agency, the World Bank Group's latest study, "World Development Report 2026: Decoding AI for Development," presents AI as a historic opportunity for developing nations to fast-track their economic growth. The report outlines how AI can aid in rapid development across sectors by addressing deficiencies in energy, internet connectivity, skills, and institutional infrastructure.
The study finds that AI poses a higher automation risk to jobs in high-income countries compared to those in developing nations. Despite these risks, the report highlights the equal potential of AI to boost labor productivity across both developed and developing countries. It also warns of the risks if developing countries fail to implement necessary measures, potentially exacerbating existing inequalities and concentrating market power.
Nayyar argues that while discussions often focus on potential job losses due to AI, the reality in developing economies suggests a different scenario. He points out that employment in these regions is more reliant on manual labor, offering AI the chance to complement human capabilities by providing expertise that might otherwise be inaccessible.
The potential of AI to aid developing countries lies in its ability to expedite the acquisition of skills and expertise, helping to address the shortage of qualified professionals. Nayyar emphasizes that AI can significantly speed up the transformation of developing economies by enhancing human capabilities and solving complex problems.
For AI's benefits to materialize quickly, developing countries must invest in foundational infrastructure, skills, and data systems. Nayyar stresses that without these investments, the advantages of AI could be delayed, and the growing technology gap could worsen inequalities.
The report advocates for the creation of a suitable business environment and digital infrastructure to harness AI's potential. It highlights the importance of developing a broad skill base in STEM and other areas without overly specializing, to enable adaptability to the evolving demands of AI technology.
Nayyar also addresses concerns about job displacement, asserting that while AI will automate certain tasks, it will also create new roles and professions, following historical patterns of technological advancement.
The report suggests a three-stage approach for developing countries to leverage AI effectively: adopt, adapt, and advance. By adopting existing AI solutions and adapting them to local contexts, developing nations can utilize AI as a tool to enhance capabilities and address specific challenges.
Nayyar advises against rushing into comprehensive AI regulations, recommending instead the use of voluntary standards to build trust and manage risks. He suggests leveraging existing laws and regulations as a more pragmatic approach given the rapid evolution of AI technologies.
In conclusion, the World Bank Group's report underscores the critical role of strategic preparation in enabling developing countries to harness AI's potential for economic transformation. With the right investments and policies, AI can be a powerful tool for narrowing the gap between developing and developed economies.