World Bank urges developing nations to adopt small AI models

The World Bank is calling on developing countries to prioritise the development of small artificial intelligence models that function on mobile devices with limited connectivity. The institution believes this approach is essential for emerging economies to capture the full advantages of the technology. Paschal Donohoe, the bank’s chief knowledge officer, stated that while major technology firms in Silicon Valley concentrate on advanced consumer products, AI can significantly accelerate development in emerging markets if it is tailored to local requirements.

Small AI relies on specialised models trained on narrower datasets for specific purposes. Donohoe, a former Irish finance minister, argued that economic progress in partner countries, which might otherwise take centuries to achieve, could potentially occur within decades. He noted that these models would be accessible in local settings with low connectivity, available in the community’s native language, and typically accessible via mobile phones. He cited the AgriConnect agricultural scheme in India as an example, where farmers required soil analysis in their own language. Donohoe explained that there are insufficient scientists and agricultural experts to serve every small farm, making small AI a critical tool for meeting these information needs. He suggested that such products could result from collaboration between the World Bank, governments, and the private sector.

The impact of AI on employment and growth is a key theme at the annual meetings of the World Bank and the International Monetary Fund, currently taking place in Bangkok. Kristalina Georgieva, the IMF’s managing director, urged governments to establish the necessary preconditions for AI success. She highlighted the need for access to electricity and digital infrastructure, as well as ensuring people are prepared for adoption. She also emphasised the government’s role in providing safety and protecting against malicious actors. Georgieva noted that if these basics are in place, adoption could be as democratic as the cellphone. The World Bank’s annual world development report, published in August, highlighted the potential benefits of AI but noted that nearly a third of rural schools in sub-Saharan Africa lack electricity and over two-thirds lack consistent internet access.

Georgieva warned that 40% of global jobs are likely to be augmented or eliminated by AI over time, with young people entering the labour market facing particularly acute challenges. She stated that young people typically start in routine, repetitive roles before advancing, but these positions may disappear. She remarked that no young person would want to be a barista as a professional future if such roles vanish. Meanwhile, under President Ajay Banga, the World Bank has focused on attracting private-sector funding to emerging economies. Donohoe reported that the bank mobilised $120bn of private capital in the past year using guarantees and financial instruments, despite aid budget cuts in countries like the US and the UK. He stressed the link between private capital mobilisation, jobs, and economic development.