AI offers ‘lifeline’ for emerging economies: World Bank

The World Bank reported on Tuesday (Aug 4) that artificial intelligence threatens only 4.5% of jobs in low-income and middle-income countries, compared to 14.2% in high-income countries, and could enable developing economies to gain a century's worth of development in a decade if they address power, connectivity, and skills gaps. World Bank Chief Economist Indermit Gill said, "AI has thrown developing economies a lifeline, and they should seize it," noting that adapting small, low-cost AI tools could improve healthcare, education, and agriculture. The report warns of risks like income inequality and misinformation but stresses that missing out would be costly.

AI offers ‘lifeline’ for emerging economies: World Bank Artificial intelligence threatens only 4.5% of jobs in low-income and middle-income countries LONDON Artificial intelligence could enable developing countries to gain a century’s worth of development in a decade if they act quickly on power, connectivity and skills gaps, the World Bank said in a report on Tuesday Aug 4 . Widespread job losses due to AI are also less of a threat to emerging economies, it said, adding that developing economies have more to gain and less to fear than richer nations https://www.businesstimes.com.sg/opinion-features/who-captures-value-singapores-s37-billion-frontier-tech-bet . “AI has thrown developing economies a lifeline, and they should seize it,” said Indermit Gill, the World Bank’s chief economist, in a statement accompanying the report. Companies worldwide are spending billions to harness an anticipated AI revolution, while governments are scrambling to ensure their nations reap the benefits. For many companies and countries, the challenge will be to build power-hungry data centres https://www.businesstimes.com.sg/opinion-features/asia-becoming-self-supporting-ai-ecosystem-western-firms-are-missing-out and find the energy generation to support them. But Gill said that emerging economies do not need vast resources or bespoke large language models to benefit. “By adapting small, low-cost AI tools to local conditions, they can bring better medical care, education, judicial services and agricultural extension within reach of millions.” Healthcare workers may be able to use AI to speed diagnoses; teachers could use it to improve lesson plans; farmers might rely on it to determine what to plant and when. The International Monetary Fund has said that AI could boost Sub-Saharan Africa’s economy by about 4 per cent over the next decade, under the right circumstances. Fewer jobs at risk – but stakes are high Generative AI is three times more likely to threaten jobs in rich countries, where 14.2 per cent are at risk, than in low-income and middle-income countries, where 4.5 per cent of jobs are exposed, the World Bank found. The share of jobs expected to benefit from meaningful productivity gains is also similar: 16.2 per cent in developing economies and 18.7 per cent in high-income countries. The World Bank said in the report that governments must improve electricity and Internet access, boost digital skills https://www.businesstimes.com.sg/startups-tech/technology/nearly-9-10-finance-executives-say-ai-skills-are-more-valuable-mbas and expand access to smartphones and computing devices. It warned, however, that AI could bring “greater income inequality, stealthier misinformation, and political repression”. But the cost of missing out would be severe, it said. “Today’s developing economies missed the first Industrial Revolution and spent the next two centuries paying the price,” Gill said. “They cannot afford to miss this one.” REUTERS Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free. Share with us your feedback on BT's products and services TRENDING NOW /pulse?ref=trending-now Hong Leong, GuocoLand JV sole bidder for condo plot on former Keppel Club site Yeoh Pei Xien: YTL’s third-gen scion with a pastor’s heart Lower consent hurdle among changes proposed for en bloc sales to spur redevelopment, protect minority owners Nvidia will soon face a chip limit, warns Huawei’s top scientist