Artificial intelligence doesn’t have to come from a massive data centre or require expensive computing systems to make a difference. For millions of people in developing countries, a simple AI tool running on a mobile phone could prove far more useful.
The World Bank is encouraging developing economies to embrace small AI, a more accessible form of artificial intelligence that can help communities overcome challenges in agriculture, education, healthcare and public services.
Speaking during the World Bank and International Monetary Fund’s annual meetings in Bangkok, Paschal Donohoe, the World Bank’s chief knowledge officer, highlighted how locally adapted AI systems could accelerate economic development.
The opportunity is significant. Instead of waiting generations for improvements in productivity and access to expertise, developing countries could use AI to address longstanding problems much faster.
But making that happen will require more than introducing new technology.
Small AI Could Make Artificial Intelligence Accessible to Millions
While major technology companies continue investing billions of dollars in increasingly powerful AI models, the World Bank believes smaller, specialised systems could deliver substantial benefits to developing economies.
Small AI generally refers to artificial intelligence applications designed to perform specific tasks without relying on the enormous computing resources associated with advanced general-purpose models. Some can operate on mobile devices, through basic messaging services or with limited internet connectivity.
For developing countries, that difference matters. Many communities still lack reliable broadband access, modern computing infrastructure and the financial resources needed to use expensive AI services.
A small AI application that helps farmers understand soil conditions or assists teachers with classroom materials could provide immediate value without requiring sophisticated infrastructure.
The World Bank’s World Development Report 2026 argues that developing countries do not need to build the world’s most advanced AI models to benefit from artificial intelligence. Instead, they can adapt existing technology to local languages, institutions and economic needs.
That approach could make AI more practical for communities that have historically struggled to access advanced digital services.
Indian Farmers Highlight the Practical Benefits of Small AI
Agriculture is emerging as one of the clearest examples of how small AI could support developing economies.
Donohoe pointed to India’s AgriConnect initiative, which uses mobile-based technology to help farmers access agricultural information, including soil analysis, in languages they understand.
For small-scale farmers, obtaining professional agricultural advice can be difficult. Specialists may be located far from rural communities, while the cost of individual consultations can put expert guidance beyond reach.
AI could help narrow that gap by delivering relevant information directly through mobile phones.
A farmer might use an AI-powered application to understand soil conditions, interpret agricultural information or identify potential problems affecting crops. Such tools could also make technical guidance easier to understand for people who are unfamiliar with specialised agricultural terminology.
The technology does not eliminate the need for agricultural experts. Farmers still need accurate local information, reliable recommendations and access to professionals when more complicated problems arise.
What small AI offers is a potentially cheaper way to distribute knowledge across communities where professional support remains limited.
Poor Internet Access and Electricity Threaten AI Adoption
The promise of small AI comes with a familiar obstacle: many developing countries still lack the infrastructure needed to support widespread digital technology.
Reliable electricity, internet connectivity and digital literacy remain major challenges, particularly in rural communities.
These shortages can limit access to AI applications even when developers design them to operate with relatively little computing power.
Schools provide a striking example. In parts of sub-Saharan Africa, inadequate electricity and unreliable internet connections continue to restrict the use of digital learning technologies.
The World Bank has warned that artificial intelligence cannot deliver its full economic benefits without improvements in infrastructure, education and institutional capacity.
Kristalina Georgieva, managing director of the International Monetary Fund, has similarly emphasised the importance of strengthening the foundations needed for AI adoption.
For governments, the challenge is not simply deciding which AI tools to introduce. They must also consider whether communities have the electricity, connectivity and skills required to use them.
Without those foundations, the countries that could benefit most from affordable AI may struggle to take advantage of it.
Artificial Intelligence Could Disrupt 40% of Jobs Worldwide
Artificial intelligence could improve productivity across developing economies, but its impact on employment remains a growing concern.
Georgieva warned that approximately 40% of jobs worldwide could face disruption from AI, particularly as businesses adopt systems capable of automating routine cognitive tasks.
Young workers entering the labour market may be especially vulnerable.
Many entry-level positions involve administrative work, document processing, basic research and other repetitive activities. As AI systems become more capable, companies may increasingly automate some of these responsibilities.
That could make it harder for younger employees to secure their first professional opportunities.
The consequences will vary across countries and industries. AI may replace certain tasks while helping workers complete others more efficiently.
In developing economies, where manual occupations account for a significant share of employment, the immediate effects could differ from those experienced in wealthier countries with larger knowledge-based industries.
The World Bank’s research suggests that AI may complement workers in many developing countries rather than immediately replace them.
Even so, governments will need to strengthen education, workforce training and employment policies to help people adapt to changing labour markets.
World Bank Seeks Private Investment to Support Economic Development
Expanding access to artificial intelligence will require investment, particularly in countries where public finances are already under pressure.
The World Bank has been working to attract more private capital into developing economies as governments face growing demands for infrastructure, education and economic development.
Under President Ajay Banga, the institution has placed greater emphasis on mobilising private investment through financial guarantees and partnerships.
Donohoe said the World Bank had helped mobilise approximately $120 billion in private capital over the previous year.
That funding relates to broader development priorities rather than AI projects alone, but it illustrates the institution’s effort to encourage investment in emerging markets.
For artificial intelligence, private-sector involvement could help support digital infrastructure, technology development and locally adapted applications.
Governments could also work with businesses and international organisations to make AI tools more affordable and accessible.
The challenge is ensuring that investment addresses genuine development needs instead of concentrating exclusively on commercially attractive markets.
Local AI Models Could Help Developing Countries Reduce Technology Dependence
The World Bank’s emphasis on small AI also raises an important question about who controls the technology that developing countries use.
Much of the world’s advanced AI infrastructure remains concentrated among a relatively small number of technology companies, primarily based in wealthier economies.
These companies control many of the leading AI models, specialised computing systems and data centres needed to develop and operate powerful applications.
For developing countries, relying entirely on imported AI services could create long-term technological dependencies.
Locally adapted AI models offer another option.
By developing applications that understand regional languages, local economic conditions and community needs, countries could gain more control over how artificial intelligence supports their development priorities.
A healthcare application designed for rural clinics, for example, may need different capabilities from a system intended for a major hospital in a wealthy country.
The same applies to education, agriculture and public administration.
Rather than competing directly with global technology companies, developing economies could focus on adapting available AI systems to solve problems that matter most to their populations.
The World Bank describes this broader strategy as adopting, adapting and advancing AI according to each country’s capabilities and needs.
Small AI Could Accelerate Economic Growth Across Emerging Markets
The potential economic impact of artificial intelligence extends beyond individual applications.
If businesses can access affordable AI tools, they may be able to improve productivity, reduce administrative costs and make better decisions without investing heavily in advanced technology.
Small enterprises could use AI to organise business information, communicate with customers or understand market conditions.
Teachers could receive assistance preparing educational materials, while public agencies might use specialised systems to improve routine administrative services.
Healthcare providers could also benefit from tools that support screening, information management and access to medical knowledge, provided they meet appropriate safety and accuracy standards.
These applications could be particularly valuable in countries facing shortages of skilled professionals.
The World Bank believes artificial intelligence could help developing economies overcome some of the barriers that have historically slowed economic progress.
However, faster adoption does not automatically translate into stronger economic growth. Countries still need reliable infrastructure, effective governance, local expertise and policies that encourage productive investment.
The real measure of success will be whether AI improves services, raises productivity and creates opportunities for people who currently have limited access to technology.
The Future of AI in Developing Countries May Depend on Smaller Solutions
The global artificial intelligence industry continues to focus heavily on powerful models, enormous data centres and multibillion-dollar investments.
For developing countries, the most useful innovations may be considerably smaller.
A mobile application that helps farmers make better decisions, an educational tool that supports teachers or an AI system that makes government information easier to access could have a meaningful impact on everyday life.
These applications may never attract the same attention as the latest frontier AI models. They could still deliver significant economic and social benefits.
The World Bank’s message is that developing economies should not wait until they can afford the most advanced AI infrastructure before exploring the technology’s potential.
Instead, they can begin with affordable systems tailored to local needs while gradually improving the infrastructure and skills required for wider adoption.
Small AI will not solve every development challenge. But it could help make artificial intelligence useful to millions of people who have so far remained on the margins of the global technology boom.
Sources
- The Guardian – World Bank Says ‘Small AI’ Could Transform Developing Countries – October 18, 2026.
- World Bank – World Development Report 2026: The Promise of Artificial Intelligence – 2026.
- World Bank Documents & Reports – World Development Report 2026: Full Report – 2026.
- World Bank – Artificial Intelligence for Development: Concept Note – 2026.
