Why in News?
The World Bank has released the World Development Report (WDR), 2026, which looks at how developing countries can use Artificial Intelligence (AI) for economic growth and better public services.
Importance
- The report explains how developing countries can use AI for growth and development.
- It stresses the need for better digital infrastructure, skills and institutions before moving towards advanced AI.
- The report says that the proper use of AI can improve productivity and create new opportunities.
Key Highlights
- The report follows the “Adopt, Adapt and Advance” approach for AI.
- Jobs in high-income countries are more than three times as likely to face automation risks from generative AI compared to developing countries.
- AI can improve productivity in more than 16% of jobs in developing economies and over 18% of jobs in advanced economies.
- In agriculture, AI can help improve productivity and help farmers deal with climate-related challenges.
- The report warns that developing advanced AI systems too early can be costly for developing countries.
- Many developing countries still face problems related to electricity, internet access, data systems, digital skills and institutional capacity.
Recommendations
- Countries should first adopt available AI technologies, adapt them to local needs and then advance towards developing their own AI capabilities.
- Governments should improve digital infrastructure, develop AI-related skills and support innovation.
- Countries should also focus on privacy, reducing bias and building public trust while using AI.
Static Facts
- World Bank: International financial institution
- Established: 1944
- Established at: Bretton Woods Conference
- Headquarters: Washington, D.C.
- The World Bank Group has five affiliated organisations, including the International Bank for Reconstruction and Development (IBRD) and the International Development Association (IDA).
