27/12/2025
DEVELOPING COUNTRIES NEED TO LEAP FORWARD WITH AI – WORLD BANK
MASERU - -Artificial intelligence (AI) is advancing at an extraordinary speed, reshaping how people learn, work, and live. This was said by the World Bank Senior Managing Director Axel van Trotsenburg in a 2025 Digital Progress and Trends Report.
Axel said AI’s ability to unlock access to knowledge, boost productivity, and open new markets holds immense potential to accelerate development, creating jobs, new industries, and economic transformation.
He explained that expanding digital access will be one of the greatest drivers of future employment, noting that 10 of the 15 fastest growing jobs globally are now in technology or technology-enabled roles.
‘’In addition, AI-related job postings are now rising faster in middle-income economies, up to 16 percent in upper-middle-income and 11 percent in lower-middle-income countries, compared to just two percent in high-income countries. ‘’
He also indicated that this report, Strengthening AI Foundations, is the second in the Digital Progress and Trends Report series, providing a comprehensive, data-driven snapshot of the global AI landscape, highlighting a stark divide.
‘’Most innovations remain concentrated in high-income countries. Yet, a promising trend is emerging, as low- and middle-income countries are actively adopting “small AI” solutions.’’
Axel also noted that while these immediate, localized impacts are crucial, continued investment in strengthening the broader AI foundations is needed to embrace AI at scale over time and to seize this opportunity and facilitate the growth of small AI, governments need to prioritize investment in what is called the foundational “4Cs”.
He further said connectivity, encompassing reliable digital infrastructure, energy, and device access, is the indispensable baseline, and compute, covering AI chips, servers, data centers, and cloud services, is increasingly becoming the “new electricity” of the AI era.
He added that context, or locally relevant data and content, is essential to build trusted, inclusive, and effective AI systems and competency is the set of robust digital skills that are indispensable for adopting, adapting, and innovating with AI. ‘’Governments have a pivotal role to play in building and strengthening these critical foundations so that AI can take root and flourish in developing countries.’’
He announced that the World Bank Group is committed to helping countries harness AI for inclusive and sustainable development, including supporting the 4Cs, strengthening data governance, championing regulatory and institutional reforms, and investing in the human capital essential to thrive in today’s digital era.
Further, the Director indicated that new World Bank Group digital strategy includes AI readiness as a core pillar. It also emphasizes the importance of having dynamic local innovation ecosystems and ensuring that AI tools are aligned with local realities and priorities.
He pointed out that policies that promote competition and equitable distribution of AI gains will be critical for mitigating risks and ensuring broad-based benefits. As the AI era accelerates, developing countries need to be prepared to leap forward. Small AI offers a unique opportunity to bypass traditional development barriers and spark homegrown innovation and inclusive growth.
He said this report is a call for collective and strategic action. To ensure that AI becomes a force for shared prosperity, rather than a new source of inequality, adding that people must work together to expand access, close skill gaps, manage risks, and shape a future where the transformative power of AI truly benefits everyone.
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