World Bank Urges Developing Countries to Adopt 'Small AI' for Economic Growth

The World Bank is urging developing countries to create small AI models to obtain the full benefits of artificial intelligence. Small AI uses specialised models trained on narrower datasets for a specific purpose. Paschal Donohoe, the World Bank's chief knowledge officer, said small AI would operate in local languages on mobile phones with low connectivity. Donohoe said AI could accelerate development in emerging economies, but only if the technology was adapted to local needs. Donohoe said economic development that could have taken centuries in countries the bank serves could potentially happen within decades.

Donohoe, a former finance minister for Ireland, cited farmers in India participating in the World Bank's agricultural scheme, AgriConnect. The farmers needed soil analysis in their own languages. Donohoe said scientists and agricultural experts would be insufficient to meet those needs for every small farm in India. Donohoe said small AI on mobile phones could help meet those information needs. Donohoe suggested that collaboration between the World Bank, governments and the private sector could produce such products. Silicon Valley's large technology companies are focusing on increasingly sophisticated consumer products.

The effects of AI on jobs and growth are a central theme of the World Bank and International Monetary Fund annual meetings in Bangkok, Thailand, this week. IMF Managing Director Kristalina Georgieva called on governments to establish the conditions for AI to succeed during a panel on Monday. Georgieva said AI adoption required electricity, digital infrastructure and people prepared to adopt the technology. Georgieva said governments should provide safety and protection against bad actors so adoption could work. Georgieva said adoption could become as widely accessible as mobile phones if the basic conditions were established.

The World Bank's annual world development report, published in August, highlighted AI's potential benefits. However, the report said almost a third of rural schools in sub-Saharan Africa lacked electricity. The report said more than two-thirds of rural schools in sub-Saharan Africa lacked a consistent internet connection.

Georgieva warned that AI was likely to augment or eliminate 40% of jobs worldwide over time. Georgieva said the effects would be particularly acute for young people beginning their careers. Georgieva said young people normally entered routine, repetitive jobs before advancing through the ranks. Georgieva expressed concern about the disappearance of those entry-level jobs and said no young person would want work as a coffee-shop barista as a professional future.

The World Bank has focused on attracting private-sector funding into emerging economies under President Ajay Banga. Donohoe said the World Bank had mobilised $120 billion (£90 billion) of private capital in the past year through guarantees and other financial instruments. The mobilisation came as many countries, including the US and the UK, were cutting aid budgets. Donohoe said the bank wanted to highlight the link between mobilising private capital, jobs and economic development.