World Bank Warns Developing Countries to Embrace AI or Risk Being Left Behind

The World Bank has urged developing countries, including Nigeria, to accelerate the adoption of artificial intelligence (AI) or risk falling further behind advanced economies. In its latest World Development Report, the global lender described AI as a "golden opportunity" capable of transforming productivity, public services and economic growth if governments put the right policies and infrastructure in place.

The report warned that countries that fail to embrace AI could widen existing development gaps, concentrate economic opportunities in a few nations and weaken competitiveness. According to the World Bank, developing economies should focus on adopting existing AI tools, adapting them to local needs and gradually building the capacity to develop more advanced technologies.

The bank noted that AI has the potential to improve sectors such as healthcare, agriculture, education and public administration, even in countries with limited digital infrastructure. Rather than replacing large numbers of workers, AI is expected to enhance productivity in many developing economies, where manual jobs remain more common than knowledge-based roles.

World Bank experts also advised governments to prioritise investments in digital infrastructure, skills development, data governance and supportive institutions instead of attempting to compete directly with leading AI powers in developing frontier models. They stressed that adapting affordable AI solutions to local conditions would deliver greater long-term benefits than pursuing costly "AI sovereignty" projects.

The World Bank maintained that with the right policies, AI could significantly boost productivity and economic growth across developing countries. It urged policymakers to act quickly, warning that the current window of opportunity may not remain open for long as AI continues to reshape the global economy.