Leaders at the World Bank and International Monetary Fund are promoting the development of specialized artificial intelligence systems designed for use in emerging economies. These “small AI” models are trained on narrower datasets for specific purposes and can operate on mobile devices in areas with low internet connectivity, addressing a gap left by Silicon Valley’s focus on consumer-oriented products.
Paschal Donohoe, the World Bank’s chief knowledge officer, outlined the potential for such technology to compress development timelines in partner countries. He highlighted AgriConnect, a World Bank agricultural initiative in India, where farmers require soil analysis information in local languages—a service that cannot be practically provided by human experts across the country’s many small farms. Small AI systems could deliver this localized information directly on farmers’ phones in their native language.
The discussion of AI’s economic impact formed a central focus at the World Bank and IMF annual meetings being held this week in Bangkok. Kristalina Georgieva, managing director of the IMF, emphasized that successful AI adoption requires foundational infrastructure and governance. She noted the necessity of reliable electricity access, digital infrastructure development, and government protections against misuse to enable widespread adoption, comparing the potential democratization of AI access to the global reach of mobile phones.
However, significant barriers to AI deployment remain in developing regions. The World Bank’s annual development report noted that infrastructure gaps are substantial, with nearly a third of rural schools in sub-Saharan Africa lacking electricity and over two-thirds without consistent internet connections. Georgieva also warned that globally, approximately 40% of jobs could be augmented or eliminated by AI, with young workers entering the labor market facing particular vulnerability as routine positions become automated.
The World Bank under president Ajay Banga has prioritized mobilizing private-sector capital into emerging economies. The organization reported mobilizing $120 billion of private capital in the past year through guarantees and financial instruments, positioning private investment as a complementary approach during a period when traditional aid budgets face reductions in several developed nations.
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