Stanford Graduate School of BusinessWorld Development Report 2026: The Promise of AI - Presentation of Main Findings
Stanford Graduate School of Business
Impact, strategy, and policy 0:00
The World Development Report argues AI affects developing economies differently than advanced ones, through three factors: the capabilities it adds, the concentration of who produces it, and the complements it depends on. Since AI is context specific, simply adopting it off the shelf rarely works, so adapting it locally matters more. Governments, often budget constrained, should act as enablers, users, and regulators of AI.
Where gains are showing up 3:01
In India, AI weather forecasts help farmers plan. In Kenya, algorithms match court cases to mediators, cutting backlogs. In Bangladesh, AI imaging expands patient screening. Most government AI use, over three quarters, is in backend functions like predictive analytics and early warning systems, not headline uses like health or education delivery. Job disruption risk is also lower, since work in developing economies is more manual than cognitive.
Risks and preparedness gaps 6:01
AI production is concentrated in a few firms and countries, making full sovereignty costly, so interoperability matters more. Benefits depend on complements like electricity and internet access, which remain far from universal. Businesses cite lack of awareness and finance, not technology, as barriers. Less than one percent of ten thousand AI healthcare studies assess low-income contexts. Only one of twenty five low-income countries has published a national AI strategy.
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