India and other developing countries have far more to gain from artificial intelligence than lose, the World Development Report 2026 says. With AI taking over jobs in many countries in the world, the report is more optimistic about India’s future than any other country on Earth, and it says AI is more likely to enhance workers’ productivity, improve public services and make economic development faster than create widespread unemployment.
The report, which was published on Tuesday, highlights one major difference between high-income and developing economies when it comes to AI-driven automation. In fact, jobs in richer countries are three times more likely to be disrupted from generative AI than jobs in low- and middle-income countries. It found that only 4.5% of all jobs in developing countries are currently in danger of automation, compared to 14.2% in high-income countries. At the same time, nearly 16.2% of jobs in developing countries could experience dramatic productivity gains through AI.
The World Bank believes this is a unique opportunity for countries like India. AI can improve human skills instead of replacing human labor by putting employees ahead of other people to work in a variety of different fields and jobs by making them productive, efficient and capable. AI-powered tools in agriculture, healthcare, education and governance would then enable services to be more efficient and human-centered and at least in some cases in the end humans are still a central part of the process.
Indermit Gill, the World Bank Group Senior Vice President and Chief Economist, said that AI is a big opportunity for developing countries and that these countries don’t necessarily need to have expensive large language models or massive data centres to benefit from the technology. Rather they can adopt affordable AI applications that adapt to local languages, regional needs and community-specific needs.
Small and inexpensive AI systems can significantly improve access to medical care, educational resources, judicial services and agricultural advice, the report says. By solving practical problems instead of competing to create frontier AI models, developing countries can speed up progress that would take decades. The World Bank says that if nations act quickly, AI could move them closer to a goal in ten years, which had been nearly a century for traditional development pathways.
But the report also warns AI’s benefits are not guaranteed. Many developing countries still have unreliable electricity, inconsistent internet connectivity, limited digital infrastructure, a shortage of skilled workers, poor-quality data and weak institutions. AI could exacerbate the inequalities between countries and societies without addressing these basic issues.
In order to avoid this, the World Bank recommends a phased approach. Governments should first take advantage of AI technologies already available in the market and adapt them to the local context and only invest in advanced AI capabilities later. Trying to replicate advanced frontier AI systems too early could be costly and ineffective, the report says.
Gaurav Nayyar, director of World Development Report 2026, said the opportunity created by AI is time-sensitive. ” Those countries that invest now in electricity, digital connectivity, education, skills development and institutional capacity will be better placed to adapt AI for the benefit of their populations,” he said.
The report also displays some of the real-life examples of AI already finding tangible benefits in developing countries. Doctors are using AI to analyze medical images more efficiently, farmers are getting better crop recommendations, businesses are increasing operational productivity, and governments are increasing tax administration, disaster response, healthcare delivery and education services with AI-powered solutions.
India, specifically, is a country that can most easily seize such opportunities. Rather than spending billions on building massive AI models, the World Bank suggests that cheap AI tools for people of many languages and regions can be deployed by India. In this way, the technology is broader and is more effective.
Artificial intelligence is already being adopted in business, the report says. Almost one in five firms with a workforce of over five employees in India, Kenya, Mexico, Nigeria and Thailand said they have already begun using AI chatbots in their operations. This increasing use of AI signals that businesses are not just looking at AI as a replacement for humans, but as a productivity tool.
At the same time, the World Bank notes the importance of responsible AI governance. Governments should ensure that current laws address AI-related harms, safeguard privacy, minimise algorithmic bias and build public trust in AI-driven systems. Responsible regulation, it says, will be critical to ensure AI benefits society as a whole.
The report's findings are in line with the Indian government’s own vision for AI. AI should enhance human capabilities instead of replace them. In New Delhi, IT Secretary S. Krishnan emphasized that people needed to always be “in the loop” and AI could create new types of jobs, improve governance and support India’s long-term goal of becoming a developed nation over the next two decades.
The World Bank thinks AI could be a catalyst for inclusive growth in India, and not a threat. With some investment in infrastructure and digital skills and responsible governance that will enhance livelihoods, expand access to essential services and create sustainable growth in the years to come, AI will be a key factor in that.
