New World Bank findings suggest that artificial intelligence could accelerate India’s economic growth by boosting productivity rather than replacing larger sections of the workforce.
As more concerns over artificial intelligence (AI) disrupting jobs continue to grow all over the world, the World Bank believes that India and other developing economies may be better positioned than many advanced nations to benefit from the technology. According to the institution’s latest assessment, AI is expected to enhance productivity across emerging markets while posing a comparatively lower risk of large-scale job displacement.
The report presents a more balanced outlook on AI’s impact, arguing that countries like India have “more to gain and less to fear” because a similar share of their workforce is vulnerable to automation compared with high-income economies. Instead of replacing workers, AI is likely to complement existing skills, improve efficiency, and expand access to essential services.
The World Bank thinks only a few jobs are at risk in India.
One of the report’s key findings is that only around 4.5% of jobs in developing economies are considered highly exposed to AI-driven automation. By comparison, approximately 14.2% of jobs in wealthier nations face a higher risk of being replaced by AI technologies.
This difference largely reflects the structure of developing economies, where many occupations rely on physical, service-based and informal work that cannot easily be automated. In India’s case, AI is expected to support workers by improving productivity rather than eliminating jobs altogether. The World Bank also notes that AI can help bridge shortages of skilled professionals by assisting workers with decision-making, information access and routine administrative tasks.
AI could strengthen key sectors.
The report highlights several industries where AI could make a meaningful difference in India. Healthcare, education, agriculture and public services are expected to benefit through faster diagnostics, personalised learning, improved crop management and more efficient government services.
Rather than requiring expensive, cutting-edge AI models, the World Bank suggests that developing economies can gain significant value from smaller, practical AI applications tailored to local needs. These tools could improve service delivery without demanding massive investments in computing infrastructure. For India, where digital public infrastructure has expanded rapidly over the past decade, such AI solutions could be integrated into existing platforms to reach millions of users more efficiently.
While optimistic about AI’s potential, the World Bank cautions that realising these benefits will depend on continued investment in digital infrastructure. Reliable electricity, affordable internet connectivity, access to digital devices and workforce training remain essential for widespread AI adoption.
The report also warns of challenges such as misinformation, widening income inequality and overdependence on AI technologies developed by a small number of global companies. Addressing these risks through appropriate regulation and digital literacy initiatives will be crucial for ensuring inclusive growth. The World Bank’s assessment offers a more measured perspective on artificial intelligence at a time when discussions are often dominated by fears of job losses. For India, the technology is viewed less as a threat and more as a tool capable of improving productivity, expanding access to services and supporting long-term economic development.
