Economy

Artificial intelligence (AI) is developing at an incredible speed and has the potential to transform economies, labor markets and public services around the world. However, without deliberate investment in infrastructure and digital skills, the benefits of AI risk remaining concentrated in rich countries, warns the World Bank in its latest Digital Progress and Trends Report 2025.
The report notes that the vast majority of innovation, capital and technological capacity in the field of AI is concentrated in high-income countries, while low- and middle-income countries face a lack of infrastructure, skills and access to technology.
“AI does not automatically bring development,” the report emphasizes. “Its impact depends on building the digital foundations that enable its adoption and adaptation.”
According to the World Bank, high-income countries own about 90 percent of the leading AI models, startups and venture capital investments, despite representing only a fraction of the global population. In contrast, many developing countries still have limited access to fast internet, reliable energy and cloud services.
Although generative artificial intelligence tools, such as ChatGPT, have rapidly spread globally, their use remains highly uneven. In rich countries, about a quarter of internet users have used these tools, while in low-income countries the percentage remains below 1 percent.
The report identifies a promising trend: the rise of what the World Bank calls “micro AI” – simple, affordable applications designed for common devices such as smartphones.
These solutions are already being used in key sectors such as education, health and agriculture. Teachers, nurses and farmers in countries such as India, Nigeria, Egypt and the Philippines are using AI as a “collaborator” that increases work efficiency, without replacing the human role. The World Bank emphasizes that to truly benefit from artificial intelligence, governments must invest in four fundamental pillars, known as the “4Cs”: Connectivity – affordable internet, sustainable energy and digital devices Compute – servers, data centres and cloud services Context – local data and content, in national languages and realities Competency – digital knowledge and skills to use AI Without these foundations, the report warns, AI adoption will remain limited and unequal.
Impact on the labor market
The report notes that demand for AI-related skills is growing faster in middle-income countries than in rich countries. However, a lack of quality training programs and brain drain are limiting the long-term potential.
At the same time, artificial intelligence can automate routine tasks and put pressure on wages, especially in service and administrative professions, increasing the risk of labor market polarization.
The World Bank calls on governments to act quickly and strategically, tailoring investments in AI to each country's level of readiness. Priorities should include expanding the internet, securing computing capacity, reforming education, and policies for the responsible use of artificial intelligence.
“AI represents a defining moment for global development,” the report says. “With the right policies, it can create inclusive growth. Without them, it risks becoming a new source of inequality.”