World Bank Urges Developing Nations to Adopt 'Small AI'

The World Bank is calling on developing nations to prioritize the creation of "small AI" models, emphasizing their potential to significantly speed up economic development. Paschal Donohoe, the World Bank's chief knowledge officer, stated that these specialized AI systems, designed to operate on mobile phones with low connectivity and in local languages, could compress development timelines from centuries to mere decades. This approach contrasts with the focus of large technology firms on sophisticated consumer products.

Donohoe highlighted that the successful adaptation of AI to local needs is critical for emerging economies to fully benefit from the technology. He cited the example of Indian farmers participating in the World Bank's AgriConnect initiative. These farmers require soil analysis in their native languages, a need that cannot be met by a limited number of human experts alone. "Small AI" on mobile phones, he explained, can bridge this information gap. Such AI tools can perform cognitive tasks that often require human expertise, which is frequently scarce in developing countries.

The World Bank's World Development Report 2026, "The Promise of Artificial Intelligence," asserts that AI offers a unique opportunity for developing nations to achieve progress rapidly, provided they address foundational gaps in power, connectivity, skills, and institutional quality. The report suggests a three-step path: adopting available tools, adapting them to local conditions, and eventually advancing to frontier AI development. The bank suggests that collaboration between governments, the World Bank, and the private sector could lead to the development of these localized AI products.

While the potential benefits are significant, practical constraints remain. The World Bank's own reports indicate substantial infrastructure deficits, such as a lack of electricity and consistent internet access in many rural areas of sub-Saharan Africa. International Monetary Fund Managing Director Kristalina Georgieva echoed these concerns, emphasizing the necessity of basic infrastructure like power and digital connectivity for AI adoption. Georgieva also warned that AI could impact approximately 40% of global jobs, with young people entering the workforce being particularly vulnerable.

The World Bank has been actively working to mobilize private capital for emerging markets, having raised $120 billion in the past year through financial instruments. This effort aims to highlight the connection between private capital, job creation, and economic development. The bank's strategy focuses on adapting AI to local contexts, rather than solely importing ready-made solutions, to prevent a repeat of historical technological revolutions that left developing regions behind.