World Bank: Artificial Intelligence a 'Lifesaver' for Emerging Economies
The World Bank stated that artificial intelligence could enable developing countries to achieve the equivalent of a century of development within a decade, provided they act swiftly to close gaps in energy, connectivity, and skills.
According to Al Arabiya Net, a World Bank report clarified that widespread job losses due to AI do not pose a significant threat to emerging economies, adding that developing economies have more to gain than to fear compared to richer nations.
Indrawati Gunawan, Chief Economist at the World Bank, said in a statement accompanying the report, as reported by Reuters: “Artificial intelligence has thrown a lifeline to developing economies, and they must grab hold of it.”
Companies worldwide are spending billions of dollars to capitalize on the anticipated AI revolution, while governments are striving to ensure their countries reap the benefits of this transformation.
For many companies and countries, the challenge lies in building data centers that consume vast amounts of energy and finding sources to generate the power needed to support them. However, Gunawan noted that emerging economies do not require massive resources or large language models specifically designed to leverage this technology.
She added: “By adapting low-cost, small-scale AI tools to local conditions, these countries can deliver better services in healthcare, education, judicial services, and agricultural advisory to millions.”
The report showed that the likelihood of generative AI threatening jobs in wealthy countries, where 14.2 percent of jobs are at risk, is three times higher than in low- and middle-income countries, where the proportion of at-risk jobs stands at 4.5 percent.
Moreover, the share of jobs expected to benefit from tangible productivity gains is similar, at 16.2 percent for developing economies and 18.7 percent for high-income countries.
However, the report warned that AI could lead to “greater income inequality, the spread of more sophisticated disinformation, and political repression,” but the World Bank emphasized that the cost of missing this opportunity would be steep.
