AI Built for Local Impact
Artificial intelligence is often portrayed as a technology driven by global tech giants and cutting-edge research labs. Yet some of the most meaningful AI innovations are emerging far from Silicon Valley, created by entrepreneurs who understand local challenges and design solutions specifically for them. Across developing economies, a new generation of startups is proving that AI does not need massive computing power or constant internet connectivity to make a difference—it simply needs to solve real problems.
Turning Local Challenges into AI Solutions
Consider a hospital in Nigeria, where a single doctor may be responsible for as many as 9,000 patients—far above the ratio recommended by the World Health Organization. In such an environment, every minute spent on paperwork is time taken away from patient care.
To address this challenge, a Nigerian startup developed an AI-powered voice tool that records and organizes clinical notes in real time. The system works offline through a compact device installed directly in hospital wards, making it practical even where internet access is unreliable. By reducing administrative burdens, doctors can spend more time with patients. The solution was designed specifically for local conditions, languages, and healthcare realities—not adapted from systems built for wealthier markets. Its success has already attracted investor interest and demonstrated a viable path to growth.
This is not an isolated success story. It illustrates a broader model for how AI can drive development.
A Growing Divide—and a Major Opportunity
AI adoption is accelerating worldwide, but access remains highly unequal. By early 2025, almost one-quarter of internet users in high-income economies had already used generative AI tools. In low-income countries, usage remained below one percent.
The challenge extends beyond internet access. Many AI products are built for environments with reliable electricity, high-speed connectivity, and extensive data resources. Yet some of the sectors where AI could have the greatest impact—healthcare, agriculture, education, and small business development—are concentrated in emerging markets.
This mismatch creates a significant opportunity for entrepreneurs who understand local needs and can build solutions tailored to them.
The Power of “Small AI”
“Small AI” does not mean limited ambition. It refers to efficient, purpose-built AI systems designed to operate within local constraints. These solutions can function with limited energy resources, intermittent connectivity, and local-language requirements.
Rather than focusing on deploying the largest possible models, small AI emphasizes practical outcomes: helping farmers improve yields, supporting teachers, assisting healthcare workers, and enabling small businesses to make better decisions.
Evidence of its impact is already emerging worldwide. In Ghana, a WhatsApp-based AI mathematics tutor supported by the World Bank Group delivered learning gains equivalent to a full academic year within eight months, at a cost of only five dollars per student. In Kenya, AI tools integrated into the M-Pesa platform transformed merchant transaction data into actionable business insights, helping small businesses increase revenues without requiring additional applications. In India, an AI-powered tuberculosis screening tool that analyzes cough sounds has been used with more than 120,000 patients, improving diagnostic accuracy by as much as 16 percent.
The technology is already proving its value. The next challenge is creating the conditions for these innovations to grow.
Building the Ecosystem for Scale
The central challenge is no longer whether AI solutions work. It is whether startups with effective products can expand beyond pilot projects and achieve sustainable growth.
Achieving this requires strong innovation ecosystems. Governments must move beyond basic digital infrastructure and focus on creating environments where AI companies can launch, attract investment, and scale responsibly. This includes strengthening data infrastructure, expanding digital public goods, and developing regulations that encourage innovation while protecting the public.
Development partners can help reduce investment risks in markets where private capital remains cautious. At the same time, local entrepreneurs need greater access to mentorship, financing, partnerships, and customers that can help transform successful pilots into thriving businesses.
To support this goal, efforts are underway to establish a global acceleration program for AI startups across emerging markets. The initiative aims to help companies progress from early-stage development to commercial viability while generating lessons that can guide future policy and investment strategies.
Trust Must Come First
For AI to deliver lasting benefits, people must trust the systems they use. Users need confidence that their personal data is protected, that AI-driven recommendations affecting healthcare or financial decisions are reliable, and that accountability mechanisms exist when problems occur.
In countries where these safeguards are still evolving, trust is not simply a policy issue—it is a prerequisite for participation. Without it, many people may be excluded from the benefits AI can provide.
A Historic Development Opportunity
Countries that successfully embrace AI will achieve more than technological advancement. They will create opportunities for entrepreneurs, generate jobs, increase productivity, and address pressing local challenges. Over time, these efforts can foster new industries, strengthen exports, and promote broader economic prosperity.
The World Bank Group remains committed to helping countries build the foundations necessary for this future by expanding digital access, strengthening skills, mobilizing investment, and supporting innovators who are applying AI to real-world development challenges.
As global leaders gather at AI for Good in Geneva, the choices made today—regarding who develops AI, how it is governed, and who benefits from it—will shape whether this technological transformation becomes a force for inclusive growth or remains concentrated among a few. The true opportunity is not simply adopting AI, but adapting it to local realities so that its benefits reach millions of people around the world.
Source: World Bank Group