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The World Bank has advised developing economies to shift their artificial intelligence (AI) strategies away from the costly pursuit of building frontier AI models and massive data centres, urging governments instead to focus on practical AI applications that address local development challenges.
The recommendation is contained in the World Development Report 2026: The Promise of Artificial Intelligence, which argues that emerging economies stand to gain more by adopting existing AI technologies and adapting them to local needs than by attempting to compete with global technology giants in developing large-scale AI models.
Focus on Solving Real Problems
According to the World Bank, countries with limited financial and computing resources should concentrate on deploying AI in sectors where it can deliver immediate economic and social benefits, including healthcare, education, agriculture, public administration and financial services.
Rather than investing billions of dollars in building frontier AI systems or hyperscale data centres, the institution believes developing nations can achieve greater returns by customising existing open-weight and open-source AI models to meet local needs.
The report notes that advances in smaller, more efficient AI models have lowered the barriers to adoption, enabling governments and businesses to harness AI without the enormous infrastructure investments required to train cutting-edge foundation models.
Infrastructure and Skills Remain the Bigger Challenge
While encouraging wider AI adoption, the World Bank stressed that the greatest obstacles facing developing economies are not access to AI models but weaknesses in digital infrastructure.
The institution identified reliable electricity, affordable internet connectivity, cloud computing capacity, digital skills and access to computing resources as the critical foundations needed to unlock AI’s economic potential.
Without addressing these gaps, the report warns, countries may struggle to fully benefit from artificial intelligence regardless of how advanced the underlying technology becomes.
Avoid Costly Competition With AI Superpowers
The World Bank cautioned that developing nations should avoid trying to replicate the enormous investments being made by countries such as the United States and China in training large language models and constructing AI infrastructure.
Building frontier AI systems requires billions of dollars in specialised chips, data centres, technical expertise and energy resources—investments that may not be economically viable for many low- and middle-income countries.
Instead, policymakers are encouraged to prioritise interoperability, expand access to AI tools and build partnerships that enable local innovation while reducing dependence on a small number of global technology providers.
Nigeria Already Showing Strong AI Adoption
The World Bank’s recommendation comes as Nigeria records rapid growth in enterprise AI adoption.
Recent findings from the same report show that about 40% of formal businesses in Nigeria now use artificial intelligence—an adoption rate comparable to that of the United States. The increase reflects the growing accessibility of AI-powered tools and rising interest among businesses seeking to improve productivity and streamline operations.
Analysts say this demonstrates that meaningful AI adoption does not necessarily require countries to develop their own frontier models, but rather to create enabling environments that allow businesses and institutions to integrate existing technologies effectively.
Balancing Innovation With Independence
Although the World Bank advocates using existing AI technologies, it also warns against excessive dependence on a handful of foreign AI providers.
The report recommends that governments promote local datasets, support domestic AI talent, strengthen digital infrastructure and encourage research partnerships that enable countries to adapt global AI technologies to their own economic and cultural contexts.
Such an approach, the Bank argues, would help developing economies capture the productivity gains offered by AI while maintaining greater technological resilience and reducing long-term dependence on external platforms.
A Pragmatic Path to AI-Driven Growth
The World Bank believes artificial intelligence represents a significant opportunity for developing economies to accelerate productivity, improve public services and stimulate economic growth, provided investments are directed toward practical implementation rather than prestige projects.
For countries like Nigeria, the message is clear: success in the AI era will depend less on building the world’s largest AI models and more on creating the infrastructure, digital skills and policy environment that enable businesses, governments and citizens to apply AI effectively to real-world challenges.
As competition in artificial intelligence intensifies globally, the report suggests that developing economies can achieve greater impact by focusing on adoption, innovation and local problem-solving rather than competing in the costly race to build frontier AI systems from scratch.
