The World Bank has released its Digital Progress and Trends Report 2025, highlighting the increasing use of artificial intelligence (AI) in developing countries. The report, titled "Strengthening AI Foundations," points to significant growth in AI adoption but notes that access and capacity gaps remain.
According to the report, middle-income countries are becoming prominent users of generative AI technologies. In mid-2025, over 40% of ChatGPT’s global traffic came from these nations, with Brazil, India, Indonesia, and Viet Nam leading the way. Additionally, global job postings for generative AI roles increased ninefold between 2021 and 2024. One in five of these positions was based in middle-income countries. These trends suggest that developing economies have an opportunity to build skilled workforces and improve their standing in the digital economy.
However, disparities persist as high-income countries dominate many aspects of AI innovation. "High-income countries account for 87% of notable AI models, 86% of AI start-ups, and 91% of venture capital funding—despite representing just 17% of the global population." This concentration presents challenges for adaptation in less wealthy nations. The report notes that open-source technologies are helping democratize participation by enabling local solutions without requiring new foundational technology development.
There is also a significant imbalance in digital infrastructure. High-income countries host 77% of global co-location data center capacity as of June 2025. Upper-middle-income countries hold 18%, lower-middle-income countries have just 5%, and low-income countries less than 0.1%.
Despite these challenges, accessible "small AI" applications are already having an impact in developing economies. These tools can operate on everyday devices without extensive infrastructure and are being used to help doctors analyze health data or assist small businesses with reaching customers.
To address ongoing gaps and fully realize the benefits of AI, the World Bank emphasizes investment in four key areas: connectivity (affordable internet access), compute (computing resources), context (local languages and data), and competency (digital literacy). The report highlights current inequalities: "While 93% of people in high income countries use the internet, only 54% in lower-middle-income and 27% in low-income countries do." Furthermore, it notes that most training data is still dominated by English-language content but suggests new formats like video and audio could increase participation from developing regions.
"AI readiness depends on digital literacy and advanced skills. Less than 5% of the population in low-income countries have basic digital skills, compared with 66% in high income ones," according to the report.
The findings underscore both opportunities for growth through AI adoption as well as urgent needs for policy action to close persistent gaps.