The World Bank is pushing developing countries to adopt practical artificial intelligence tools to improve productivity and help small businesses grow, but inadequate electricity, internet connectivity and digital skills remain major barriers to wider adoption.
World Bank Group President Ajay Banga outlined the strategy Friday at the institution’s annual meetings in Bangkok, saying countries could benefit from AI without investing in the expensive computing infrastructure needed to develop advanced models.
“‘Big AI’ requires computing power, energy, data, and specialized skills that put frontier models beyond many developing countries’ immediate reach,” Banga said in his prepared remarks.
Instead, the World Bank is promoting smaller-scale applications that could help farmers improve yields, teachers tailor instruction, health workers make better-informed decisions and entrepreneurs reach new customers.
“But practical, or ‘small,’ AI can help a farmer improve yields, a teacher tailor instruction, a health worker make better-informed decisions, or an entrepreneur reach new customers,” Banga said.
The strategy places AI adoption alongside investments in electricity, connectivity, access to devices and safeguards, areas that remain critical to the technology’s commercial viability in lower-income markets.
For businesses, the potential gains include improved productivity, better access to customers and more efficient operations. But those benefits depend on whether firms can afford the technology and have the infrastructure and skills to use it effectively.
Banga also identified small businesses as a priority for the World Bank Group, saying digital records could help smaller firms secure financing, connect with larger buyers and access new markets.
The institution is seeking to link education and training more closely to the jobs and industries countries are developing.
“Skills are part of the package — connecting education and training more closely to the jobs and industries countries are building,” Banga said.
The approach also targets fragile and conflict-affected economies, where smaller firms can provide employment even when conditions discourage larger companies from investing.
For developing economies, however, wider AI adoption presents practical and financial challenges. Businesses may need to invest in devices, internet access, staff training and data systems before they can benefit from AI applications. Schools and health facilities face similar constraints.
