- World Bank report says AI may not take away many jobs in countries like India, as only 4.5 per cent of jobs in low- and middle-income countries are exposed to AI compared to 14.2 per cent in rich countries.
- Developing economies are less likely to suffer widespread job losses due to AI because they are still agrarian and reliant on small enterprises.
- AI is more likely to assist workers rather than displace them, according to the report.
- Indermit Gill, the World Bank’s chief economist, stated that AI has thrown developing economies a lifeline and they should seize it.
- Jobs in high-income countries are more than three times as likely to be at risk of automation by generative AI than those in low- and middle-income countries.
- AI adoption is gaining traction among businesses, with about one in five firms in countries like India recently using AI chatbots in their operations.
- Developing countries should focus on developing small language models tailored to specific sectors rather than investing in large AI models.
- Many developing countries still lack the basics needed to fully benefit from AI, including reliable electricity, internet connectivity, and skilled workers.
According to a World Bank report, only 4.5% of jobs in low- and middle-income countries are exposed to AI, compared to 14.2% in high-income nations.1
Indermit Gill, the World Bank’s chief economist, stated, “AI has thrown developing economies a lifeline, and they should seize it.”24
The report highlights that poorer economies, like India, are less likely to face significant job losses due to their agrarian nature and reliance on small enterprises.
“AI is more likely to lend their workers a hand than put them out of work,” the report asserts, suggesting that AI could enhance productivity in 16.2% of jobs in developing economies, nearly matching the 18.7% in wealthier countries.
However, the report warns that without addressing fundamental gaps such as reliable electricity and skilled workers, AI could exacerbate inequalities.
“The window to get this right is narrow,” cautioned Gaurav Nayyar, Director of the World Development Report 2026.
The report recommends a phased approach for developing countries, starting with adopting existing AI tools before investing in advanced capabilities.7
“They do not need large models or big data centers to reap its benefits,” Gill emphasized, advocating for small, low-cost AI tools tailored to local conditions.
The findings align with the Indian government's perspective on AI, which aims to enhance human capabilities rather than replace them.
“AI could create new kinds of jobs, improve governance and help India move closer to its goal of becoming a developed nation over the next two decades,” said IT Secretary S Krishnan.
“Only 4.5% of jobs in low- and middle-income countries are exposed to AI versus 14.2% in rich economies, though the report warns nations reliant on call centers and back-office services face big losses. The report urges governments to prioritize small language models for agriculture, education and healthcare over costly bespoke LLMs.”
indianexpress.com
