Hyderabad: Artificial intelligence (AI) is unlikely to replace large numbers of workers in developing countries such as India, according to the World Development Report 2026: Decoding AI released by the World Bank.
‘AI likely to boost productivity’
The report argues that AI is more likely to boost workers’ productivity by helping them perform tasks more efficiently than replacing them altogether.
It says developing economies have ‘more to gain and less to fear’ from AI than advanced economies because a much smaller share of their workforce is vulnerable to automation.
The findings come at a time when governments and businesses worldwide are rapidly adopting generative AI tools, raising concerns about their impact on employment. While much of the debate has centred on job losses in advanced economies, the World Bank says the picture is very different for countries such as India.
‘Only 4.5% of jobs are at risk’
According to the report, only 4.5 per cent of jobs in developing economies are at risk of being automated by AI, compared with 14.2 per cent of jobs in advanced economies.
This is because developing countries have a larger share of workers employed in occupations that require physical labour, mobility and face-to-face interaction, making them harder to automate with current AI technologies.
The report notes that AI exposure should not be confused with automation. Even when AI can perform certain tasks within a job, it often complements workers rather than replacing them entirely.
Why India may be less vulnerable
India’s labour market reflects many of the characteristics highlighted by the World Bank.
According to the Periodic Labour Force Survey (PLFS), agriculture remains the country’s largest employer, while millions of people also work in construction, manufacturing, transport, retail and other informal sectors.
Many of these occupations involve manual work, customer interaction and on-site decision-making that cannot easily be automated by today's AI systems. As a result, AI is expected to improve productivity in these sectors rather than eliminate jobs.
Supplementing human judgement and creativity
The World Bank says AI is likely to automate repetitive and time-consuming tasks while allowing workers to focus on activities that require human judgement, communication and creativity.
For example, teachers can use AI to prepare lesson plans, healthcare workers can use it to analyse medical images, and small businesses can use AI-powered tools for bookkeeping, customer support and marketing. Rather than replacing workers, these technologies can help them perform their jobs more efficiently.
The report also points out that inexpensive AI applications running on smartphones and other consumer devices could enable developing countries to benefit from AI without building expensive large language models or massive computing infrastructure.
Some jobs will still face disruption
While the overall risk of automation is lower, the report cautions that workers performing routine cognitive tasks could face significant changes.
Administrative assistants, data-entry operators, customer service executives, bookkeepers and other clerical workers are among those most likely to see AI automate parts of their work.
However, the report says the extent of disruption will depend on how quickly businesses adopt AI and whether workers receive opportunities to learn new skills.
What do other organisations predict?
The World Bank’s assessment is broadly consistent with findings from the International Monetary Fund, which estimated in 2024 that nearly 40 per cent of jobs worldwide are exposed to AI, with advanced economies facing much higher levels of exposure than developing countries.
Similarly, the International Labour Organisation (ILO) has found that generative AI is more likely to transform jobs than eliminate them, with clerical occupations facing the greatest exposure.
The Future of Jobs Report 2025 published by the World Economic Forum also projects that while AI and automation will displace some jobs, they are expected to create millions of new roles in areas such as AI development, cybersecurity and data analysis.
India’s opportunity
India has been expanding its AI ecosystem through the government’s IndiaAI Mission, which aims to strengthen computing infrastructure, improve access to AI resources and support innovation.
According to the World Bank, countries like India can maximise AI’s benefits by investing in digital infrastructure, improving internet connectivity, strengthening data governance and equipping workers with digital and problem-solving skills.
Strong digital infra and governance crucial
The report argues that data has become one of the world’s most valuable economic resources. Countries that build strong digital infrastructure and responsible data governance frameworks will be better positioned to benefit from AI-driven growth, while those that fail to invest risk falling behind in the digital economy.
What does it mean for India?
The World Bank’s findings challenge the widespread perception that AI will inevitably eliminate millions of jobs. Instead, they suggest that India’s workforce is more likely to experience AI as a productivity-enhancing tool than as a replacement for human labour.
While routine office work may undergo significant changes, the country’s large labour-intensive economy means AI is expected to complement workers in many sectors rather than replace them.
The report argues that the biggest challenge for India will be ensuring that workers have access to digital infrastructure, training and reskilling so they can benefit from AI as its adoption accelerates.
