World Bank Urges Developing Economies to Adopt Localized AI Tools

The World Bank's latest report says developing economies should focus on small, low-cost AI tools adapted to local needs instead of competing with rich countries in building huge data centers and large language models. These tools are more likely to improve healthcare and education, and help these economies, which are seeing their weakest growth in 30 years, get back on track.

The report says AI is more likely to help workers than replace them, and could achieve in 10 years what might otherwise take 100 years, like providing medical, legal, and educational services. Jobs in high-income countries are three times more likely to be automated than in lower-income ones, but AI can also ease shortages of professionals, helping teachers, nurses, and farmers work better.

However, poor infrastructure and skills are major hurdles. In sub-Saharan Africa, 3 out of 10 rural schools lack reliable electricity, and 89% of 10-year-olds cannot read simple text. The World Bank warns that without better infrastructure, talent, and institutions, AI might widen the productivity gap and bring risks like job losses in call centers, more inequality, and cybercrime.