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Update date: July 5, 2026 13:33 IST
new delhi [India]July 5 (ANI): Artificial intelligence is moving from an experimental tool to a general-purpose technology that can reshape production, productivity and economic growth, but its benefits in emerging markets will depend on building sustainable local ecosystems, not just importing models, according to a new World Bank Group report.
The report argued that AI is rapidly evolving from traditional pattern recognition systems, to generative AI that creates content, to emerging agent AI that can plan and execute multi-step tasks with little human help. With adoption spreading faster than previous waves of technology, demand is growing around the world. Emerging markets offer an opportunity for AI to leapfrog constraints in education, healthcare, and finance, where defined tasks and large datasets exist.
However, development remains highly concentrated in a small number of high-income economies. For emerging markets to capture value, investment decisions need to move beyond model-centric hype and evaluate the complete operating environment, including digital infrastructure, data, skills, and the actors that connect them, the authors say.
The enablers of AI include hard infrastructure such as connectivity, data centers, high-performance computing, and edge devices. Soft infrastructure such as skills programs, accelerators, research hubs, and AI communities. Digital public infrastructure for identity, payments and data exchange. AI building blocks such as foundational models, MLOps platforms, and data tools. This report highlights both proprietary and open source/open weight approaches as ways to reduce costs and increase local control.
AI-enabled elements are vertical AI solutions built for specific sectors. These range from AI-enhanced versions of existing software to AI-native companies built from the ground up, such as fintech credit scoring in Africa and agritech yield forecasting in South America.
The report outlines three areas of impact: In the short to medium term, there will be direct benefits from the productivity, cost efficiency and better service delivery of local implementation. Medium to long term: Benefits from domestic ecosystems, jobs, skills, exports and building stronger institutions. Long term: Systematic benefits from global dissemination, new industries, occupations, and scientific discoveries.
Key challenges noted include fragmented markets and low purchasing power that complicate monetization, concentration in a few global players, and rapid commoditization of models and infrastructure. The handbook recommends validating product-market fit early, investing in local adaptation, and using open tools where appropriate.
The report states that sustainable AI in emerging markets requires coordination between governments, businesses, investors, communities and entrepreneurs. With the right foundations, AI can support long-term economic transformation tailored to local needs and capabilities. (Ani)
