World Development Report 2026: The Promise of AI - How Will AI Impact Jobs and Productivity?

In a time when development progress has dipped to its weakest pace in 75 years, artificial intelligence (AI) offers developing economies a rare path to greater prosperity. World Development Report 2026 provides the first comprehensive assessment of what AI means for these economies: how firms and governments are already using it, what is holding them back, where the largest gains may lie, and how the risks can be managed. AI is reshaping pathways of growth, productivity, and jobs. With most people employed in manual rather than cognitive work in developing countries, the immediate impact of AI adoption is to complement rather than displace workers. Over time, as complementary factors—infrastructure, skills, institutions, and venture capital—develop, AI can enable productive businesses to grow. In the absence of the right complementary factors, however, AI may widen gaps in productivity between developing countries and high-income countries, where rates of AI adoption are higher. In this session, Elwyn Davies, Co-author of World Development Report 2026 and Senior Economist, Trade, Competitiveness, and Business Group, World Bank Group, and Ufuk Akcigit, Co-Academic Lead, World Development Report 2026, and Deputy Chief Economist and Director of Private Markets, Development Economics, World Bank Group, explore how AI has been impacting labor markets, including a presentation of survey results on how firms are using and adopting AI. This event is sponsored by the World Bank Group, Stanford Leadership Institute, Stanford Digital Economy Lab, and Stanford King Center on Global Development. The full program and additional links are available here: https://www.gsb.stanford.edu/events/world-development-report-2026-promise-artificial-intelligence

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