Adapt AI Locally to Save Billions, Says World Bank
The World Bank suggests developing nations should adapt existing AI tools to local needs rather than building costly systems from scratch.
Developing nations can unlock the most significant advantages of Artificial Intelligence (AI) by tailoring existing technologies to their specific local needs, rather than pouring billions of dollars into building advanced systems from the ground up, according to the World Bank’s World Development Report 2026.
Prioritize Affordable and Context-Specific Solutions
The report emphasizes that the true potential of AI lies in affordability and local relevance. Instead of attempting to replicate the massive, resource-intensive models developed by global tech giants, governments are encouraged to focus on expanding solutions that have already demonstrated measurable results in public services. The World Bank warns that simply adopting technology developed in other parts of the world will not be enough, as AI is context-specific.
To achieve this, the report suggests that governments focus on:
- Strengthening digital infrastructure and internet access.
- Developing necessary human skills and technical expertise.
- Using public procurement to scale up successful AI pilots.
- Creating flexible regulatory frameworks and voluntary standards to build trust.
Real-World Success Stories
The report highlights several instances where localized AI applications have already transformed lives in developing regions:
1. Agriculture in India
In India, AI-supported weather forecasting has reached over 30 million farmers. This technology has provided many with advance predictions of the rainy season earlier than ever before, allowing for better agricultural planning.
2. Judicial Efficiency in Kenya
In Kenya, the judiciary implemented a predictive AI algorithm to manage workloads. The system allocates more than 10,000 court cases annually among over 1,500 mediators, significantly helping to reduce the massive backlog of cases.
3. Healthcare in Bangladesh
In Bangladesh, the use of AI-generated medical imaging has revolutionized screening. The technology has increased the number of patients screened daily for diabetes complications by 39.5 per cent.
The Path to Implementation
While much of the public attention is currently focused on generative AI for frontline services, the report notes that substantial gains are often found in predictive AI used for back-end public service operations. However, the benefits of these technologies will be slow to materialize without foundational support, such as reliable electricity and internet access.
The report also addresses the risks of dependency. With the leading AI companies concentrated in the United States and China, the World Bank advocates for interoperable AI systems to manage the risks of global dependency. Additionally, the report suggests that the risk of job disruption may be less immediate in developing countries compared to advanced economies, as a smaller share of their jobs are currently susceptible to AI automation.
Ultimately, the World Bank recommends that governments provide the infrastructure and skills necessary for small-scale AI investments, ensuring that technology serves the unique needs of their citizens.