The news has been collected and editorially reviewed. According to a World Bank report, the proper use of Artificial Intelligence (AI) could enable developing countries like Nepal to achieve 100 years’ worth of development goals in just one decade. In emerging economies, AI is more likely to enhance and strengthen worker productivity rather than replace employment. Indermit Gill, Chief Economist at the World Bank, stated that benefiting from AI does not require large models or expensive data centers. Kathmandu, 19 Shrawan.
The World Bank’s “World Development Report 2026” highlights AI as a potential lifeline for emerging economies. The report suggests that development targets typically taking a century to achieve can be met within ten years through the effective use of AI. It emphasizes that if governments promptly improve electricity, internet access, skill development, and institutional weaknesses, AI could significantly accelerate development progress.
Released on Tuesday, the report presents intriguing facts regarding AI’s impact on employment. In developed countries, 14.2 percent of jobs are at risk due to generative AI, compared to only 4.5 percent in low- and middle-income developing countries. Instead, the report notes AI presents a greater opportunity to enhance the capabilities of most workers.
The report identifies that AI could substantially increase productivity in 16.2 percent of jobs in developing countries, whereas that figure stands at 18.7 percent in developed nations. “In emerging economies, AI is more likely to expand and strengthen workers’ productivity rather than replace them,” the report states.
Indermit Gill, Senior Vice President and Chief Economist of the World Bank Group, said, “Harnessing AI’s benefits does not require large models or costly data centers. By utilizing locally available small-scale, low-cost AI tools adapted to local contexts, significant improvements can be made in health services, education, justice systems, and agriculture.” He added that AI development is advancing faster than electricity and internet infrastructure, urging countries to act quickly in adopting it.
The report proposes a clear three-stage roadmap for AI adoption in developing countries: first, optimal use of existing AI tools; second, customization of these tools to local languages and needs; and finally, progressive advancement in AI development.
Gaurav Nayar, Director of the World Development Report 2026, noted that AI offers opportunities to address longstanding challenges across generations within our lifetimes. However, the report highlights the need for substantial investment in infrastructure to achieve good outcomes from AI.
The report points out that nearly one-third of rural schools in Sub-Saharan Africa still lack electricity, and two-thirds do not have reliable internet service. Without addressing such fundamental deficiencies, inequality may deepen among countries like Nepal.
Additionally, the World Bank warns about issues related to data privacy and potential biases in AI-driven decision-making processes. The report cautions that if AI induces discrimination in governmental decisions or undermines public trust, compensating for such damage will be difficult.
