World Bank Urges Developing Nations to Adopt Small AI

The World Bank is urging developing countries to implement small AI models—specialized tools using narrow datasets that operate on mobile phones with low connectivity—to accelerate economic growth. Speaking at the annual meetings of the World Bank and the International Monetary Fund in Bangkok, Chief Knowledge Officer Paschal Donohoe stated that this technology could compress centuries of development into decades by providing local-language services, such as soil analysis for Indian farmers through the AgriConnect scheme.

International Monetary Fund Managing Director Kristalina Georgieva emphasized that governments must provide the essential electricity and digital infrastructure required for democratic AI adoption. Georgieva warned that AI could augment or eliminate 40% of global jobs, a shift that would particularly impact young people entering the labor market.

Parallel to these technological goals, the World Bank reported mobilizing $120bn in private capital over the past year to support emerging economies. This push for private-sector funding comes as aid budgets from countries including the United States and the United Kingdom continue to decline.