The World Bank Group has announced a shift in focus towards job creation and productivity, leveraging Artificial Intelligence (AI) to boost economic opportunities in developing countries. This new approach was highlighted by World Bank President Ajay Banga during a discussion on Small AI: More and Better Jobs at the 2026 International Monetary Fund (IMF)/World Bank annual meetings in Bangkok, Thailand. Banga emphasized the need to make technology accessible and relevant to local economies.
According to Banga, about 1.2 billion young people will turn 18 within the next 15 years, presenting countries with an opportunity to harness their demographic potential through productive employment. He stressed that realizing this potential requires investments in healthcare, education, clean water, electricity, and skills development, alongside opportunities for young people to contribute meaningfully to society. This, he believes, will promote dignity and economic inclusion.
Banga explained that employment should not be limited to jobs in large or small companies but should also include entrepreneurship and other productive activities. He noted that the World Bank's development approach now prioritizes job creation, with infrastructure, governance reforms, and policies designed to attract private investment. The private sector, he said, generates between 75 and 85 percent of jobs in any country.
The World Bank President identified infrastructure, agriculture, primary healthcare, tourism, and value-added manufacturing as five critical sectors capable of generating sustainable employment in emerging economies. These sectors, he believes, can create locally relevant jobs without depending solely on outsourcing employment from advanced economies. This approach aims to create jobs that are relevant to local economies.
Banga highlighted the potential of small-scale AI applications in improving productivity in agriculture, education, and healthcare, particularly in communities with limited access to specialized services. He cited an example of primary healthcare centers in Indonesia, where nurses use simple AI tools on mobile phones to assess patients' symptoms and connect with remote doctors. This technology has improved healthcare delivery in these communities.
The president also emphasized the importance of governments creating conditions that encourage businesses to invest and expand. He noted that small-scale AI applications could address practical challenges in developing countries, such as improving productivity in agriculture and healthcare. Banga cited examples of agricultural technology initiatives connecting smallholder farmers and cooperatives with improved seeds, fertilizers, and better market prices.
Banga concluded that while advanced AI models could disrupt some jobs in developed economies, small-scale AI presented significant opportunities to increase productivity and create employment in middle- and lower-middle-income countries. He expressed his priority to see practical small-AI applications deployed across as many emerging markets as possible. The World Bank aims to support developing countries in harnessing the potential of AI for job creation and productivity.
Key points
- The World Bank is prioritizing job creation and productivity through Artificial Intelligence (AI) to expand economic opportunities in developing countries.
- Small-scale AI applications can improve productivity in agriculture, education, and healthcare in communities with limited access to specialized services.
- The World Bank aims to support developing countries in harnessing the potential of AI for job creation and productivity.
