The World Bank is pushing developing countries to create and deploy small artificial intelligence models that can operate on mobile phones with limited connectivity, arguing the technology could dramatically accelerate economic growth in emerging markets. Paschal Donohoe, the World Bank's chief knowledge officer and former Irish finance minister, said AI adapted to local conditions could transform the pace of development. He suggested that economic progress which might historically have taken centuries could now happen within decades if emerging economies embrace appropriately designed technology.
Small AI uses specialised models trained on narrower datasets for specific purposes, unlike the broad consumer-focused systems developed by major technology firms. Donohoe highlighted agricultural work in India as an example of where the approach could make a difference. Farmers using the World Bank's AgriConnect scheme needed soil analysis information in their own language, he explained, but there were not enough agricultural experts to serve every small farm. Small AI running on mobile phones could provide this locally-relevant information without requiring extensive digital infrastructure or connectivity.
The push for small AI emerged at the World Bank and International Monetary Fund annual meetings in Bangkok this week. Kristalina Georgieva, the IMF's managing director, said governments needed to establish basic conditions for AI adoption to work, including reliable electricity access, digital infrastructure and public readiness. She drew a parallel with mobile phones, suggesting AI adoption could be equally democratising if the foundations were in place.
However, significant barriers remain in many regions. The World Bank's annual development report published in August noted that almost a third of rural schools in sub-Saharan Africa lacked electricity and more than two-thirds had no consistent internet connection. Georgieva also warned that AI could disrupt labour markets substantially, with up to 40% of jobs worldwide potentially augmented or eliminated by the technology, with particularly severe consequences for young people entering the workforce for the first time.
Under president Ajay Banga, the World Bank has prioritised attracting private investment into emerging economies as an alternative to traditional aid. Donohoe said the institution mobilised $120bn of private capital in the past year using guarantees and financial instruments, at a time when countries including the US and UK were reducing aid spending. He stressed the World Bank wanted to emphasise the connection between private capital investment and job creation in developing regions.
For savers, borrowers and business owners in developing countries, this could mean access to AI-powered financial services, agricultural advice and other tools without depending on expensive large-scale technology infrastructure or expensive overseas expertise.