World Bank says ‘small AI’ could transform developing countries

The World Bank is advocating for the development of "small AI" models, which can be deployed on mobile phones with limited connectivity, to accelerate economic growth in developing countries. Paschal Donohoe, the bank's chief knowledge officer, argues that specialized AI models trained on narrow datasets could potentially achieve economic development that would otherwise take centuries within a matter of decades.

Donohoe emphasizes the importance of tailoring AI to local needs, ensuring it is accessible on mobile phones in the local language. He cites the example of Indian farmers participating in the World Bank's AgriConnect program, who required soil analysis tools in their native language. He suggests that small AI models could emerge from partnerships between the World Bank, governments, and the private sector.

The impact of AI on jobs and economic growth is a key topic at the World Bank and International Monetary Fund's annual meetings in Bangkok. IMF Managing Director Kristalina Georgieva stresses the need for basic infrastructure, such as electricity and reliable internet, and government support to facilitate AI adoption. She warns that around 40% of jobs globally may be augmented or replaced by AI, with young people being particularly vulnerable.

The World Bank's president, Ajay Banga, has focused on attracting private-sector investment in emerging economies, mobilizing $120 billion in private capital over the past year despite budget cuts in some countries.