.
Nigeria and other developing economies could fall behind in the global artificial intelligence (AI) race unless they move quickly to adopt and adapt the technology to address local challenges, the World Bank Group’s Chief Economist and Senior Vice-President for Development Economics, Indermit Gill, has warned.
Gill delivered the warning during his keynote address at the 7th Africa Emerging Markets Forum held in Abuja, an event jointly organised by the Central Bank of Nigeria (CBN), the Emerging Markets Forum, and the Centre for the Study of the Economies of Africa (CSEA). He argued that AI represents a historic opportunity for developing nations and cautioned against repeating the mistakes of past industrial transitions.
Don’t Repeat History, Gill Tells Developing Nations
According to the World Bank economist, fears surrounding job losses caused by artificial intelligence in advanced economies should not discourage countries like Nigeria from embracing the technology.
Gill warned that ignoring AI could leave developing economies at a significant disadvantage for decades, drawing parallels with the Industrial Revolution, which many poorer nations failed to capitalise on.
He stressed that artificial intelligence should be viewed as an engine for productivity and economic transformation rather than solely as a threat to employment.
Predictive AI Holds Greatest Promise
Rather than focusing on building frontier AI models that compete with global technology giants, Gill urged policymakers to prioritise predictive AI applications capable of improving efficiency in critical sectors.
He identified agriculture, healthcare, education and the justice system as areas where predictive AI could deliver measurable improvements in productivity and service delivery.
Citing successful examples from Kenya, Bangladesh and India’s Telangana State, Gill said AI has already demonstrated its ability to solve real-world problems in developing economies when deployed to address local needs.
AI More Likely to Complement Than Replace Workers
Addressing concerns over automation, Gill argued that developing countries face far lower labour displacement risks than advanced economies.
According to World Bank research, only about 10% of jobs in lower-income countries are likely to be negatively affected by AI, compared with an estimated 30–40% in wealthier economies.
He explained that in countries such as Nigeria, AI is more likely to enhance workers’ productivity than replace them outright, making it a valuable tool for economic development rather than a widespread employment threat.
Call for Investment in Infrastructure and Skills
Gill urged governments across Africa to create an enabling environment for AI adoption by investing in digital infrastructure, expanding internet connectivity and developing the skills needed to support an AI-driven economy.
He also encouraged policymakers to promote interoperability between AI systems and support industry-led standards instead of relying exclusively on rigid regulatory frameworks.
According to him, developing economies cannot realistically compete with the enormous AI investments being made by countries such as the United States and China, making collaboration and practical implementation more effective strategies.
Okonjo-Iweala Urges Africa to Embrace Global Opportunities
Also speaking at the forum, World Trade Organization (WTO) Director-General Ngozi Okonjo-Iweala encouraged African countries to remain engaged in global trade despite increasing geopolitical uncertainties.
She noted that technological innovation and shifting global supply chains present new opportunities for developing economies willing to embrace digital transformation and industrialisation.
Okonjo-Iweala stressed that Africa should position itself to benefit from emerging technologies instead of remaining on the sidelines of global economic change.
Nigeria’s AI Future Depends on Immediate Action
Gill’s remarks come as Nigeria continues to expand its digital economy through investments in fintech, digital public infrastructure and technology innovation.
However, experts have repeatedly argued that unlocking the full benefits of artificial intelligence will require coordinated investments in broadband infrastructure, reliable electricity, digital education, research and innovation.
As AI increasingly reshapes industries worldwide, stakeholders say Nigeria’s ability to integrate the technology into agriculture, healthcare, education, manufacturing and public services will play a critical role in determining its competitiveness in the global digital economy.
For policymakers, the message from the World Bank is clear: the AI revolution is already underway, and delaying action could leave developing economies struggling to catch up for decades to come.
