World Bank Unveils First Digital Strategy, Puts AI And Job Creation At Centre
WASHINGTON–The World Bank Group has launched its first comprehensive digital strategy, placing artificial intelligence (AI), affordable internet access and job creation at the centre of its development agenda as 1.2 billion young people prepare to enter the workforce in developing countries over the next 10 to 15 years.
Announced in Seoul on Tuesday, the strategy brings together the institution’s public and private sector capabilities to help developing economies expand digital connectivity, improve access to technology and create employment opportunities.
World Bank Group President Ajay Banga said the initiative would focus on practical applications of technology, particularly affordable AI tools that can improve productivity and public services.
“Digital technology can help countries create jobs and make scarce resources go further. Realizing that potential requires a comprehensive approach—from reliable connectivity and affordable devices to digital skills and useful services,” Banga said.
“Our first digital strategy brings these pieces together, helping countries build the foundations to benefit from today’s digital tools and the promise of small AI—AI for the people,” he added.
The announcement comes amid a growing employment challenge across developing economies, where millions of young people are expected to enter the labour market in the coming years.
According to the World Bank, approximately 1.2 billion young people will reach working age over the next 10 to 15 years, while their economies are projected to generate only about 420 million jobs.
The strategy identifies digital technology as a means of boosting productivity and expanding employment opportunities across sectors such as infrastructure, energy, agriculture, healthcare, tourism and manufacturing.
It outlines four key priorities: expanding reliable connectivity, making digital devices and data affordable, strengthening digital services and skills, and preparing developing economies to benefit from artificial intelligence.
The World Bank said more than two billion people remained offline globally in 2025. Internet usage stood at just 23 per cent in low-income countries, compared with 94 per cent in high-income economies.
The institution noted that many people live within mobile network coverage but cannot afford smartphones or data services. Others lack the digital skills needed to use online platforms effectively.
Under the strategy, the World Bank will support investments in international cables, national broadband networks and local connectivity infrastructure serving homes, businesses, schools and healthcare facilities.
It will also work with manufacturers, mobile operators and financial institutions to reduce the cost of entry-level smartphones and broadband services.
Another priority is strengthening digital identification systems, payment infrastructure and secure information-sharing platforms to improve access to government and commercial services.
The World Bank also announced an AI Infrastructure and Readiness Initiative to help emerging economies access affordable computing capacity.
The initiative proposes shared, pay-as-you-go access to specialised graphics processing units (GPUs), which are used to develop and operate AI applications.
According to the bank, this approach could offer an alternative to building expensive standalone national data centres. The initiative will initially focus on Africa and Latin America.
A central feature of the strategy is the promotion of “small AI”, referring to artificial intelligence tools designed for specific tasks and adapted to local needs.
Such applications could help farmers identify crop diseases, enable health workers to improve patient care and assist small businesses in managing inventories and operations.
The World Bank said privacy protection, cybersecurity and safeguards against fraud would remain essential components of its digital development programmes.
The strategy will combine the institution’s financing, policy advice, private investment and guarantees to support country-specific priorities. The announcement did not specify a separate funding allocation for India.
The World Bank Group operates in more than 100 countries, providing financing, technical assistance and policy advice to support economic development and poverty reduction.
Under Banga, who became president in June 2023, the institution has increasingly emphasised employment generation and private capital mobilisation as key drivers of development. (Source: IANS)
