AI? “The opportunity to create jobs and productivity is enormous”

O president of the World Bank, Ajay Banga, today argued that artificial intelligence (IA) could create more work opportunities in developing countries, in contrast to fears of job losses in more developed countries.

Speaking of the opening of the Annual Meetings of the International Monetary Fund (IMF) and the World Bank, which take place this year in Bangkok, Thailand, from 12 to 18 October, Banga stressed that “in countries with low income and lower middle income, the opportunity for small AI to create jobs and increase productivity is enormous”.

As an example you cited cases in your home country, India, where AI tools help farmers choose better seeds, use more effective fertilizers, or get more accurate information about production conditions, allowing for increased yields and productivity.

Banga said that the promotion of these practical applications is one of the priorities of the World Bank and the Global Employment Council, a group set up to examine the impact of economic and technological changes on the labour market.

IMF Director-General Kristalina Georgieva said today at the same event that the AI should affect about 60% of jobs in advanced economies, compared with 23% in low-income countries, but with this difference only because technology has not yet spread fully through many lower-income economies.

For Banga, in developing countries the immediate challenge is not to “replace workers by algorithms”, but rather to ensure that technology reaches schools, hospitals, farms and small businesses, allowing productivity to increase and create new economic opportunities.

“ The issue is particularly relevant at a time when many emerging economies face the rapid growth of the young population and the need to create millions of jobs in the coming years,” he warned.

In this context, the president of the World Bank argued that artificial intelligence could become an important tool for accelerating economic development, provided it is applied in a practical manner and accessible to the needs of the developing world.

“ Job creation should be at the heart of development strategies, arguing that economic growth only produces lasting benefits when it is accompanied by work opportunities for an increasingly young population,” he said.

According to Banga, governments can guarantee access to education, health, drinking water and vocational training during childhood and youth, but real economic integration depends on the ability to find work and contribute to society.

“ When people grow up, they need the opportunity to have a job and to be a productive part of society,” he said.

Banga stressed that job creation depends mainly on private investment and not just government action. “The private sector generates between 75% and 85% of jobs in any country,” he said. “Governments create conditions, and the private sector creates jobs.”.

In this context, it argued that one of the main functions of governments and development institutions is to reduce risks so that private capital can invest on a large scale.

Artificial intelligence appears as a potentially important tool in this effort, but Banga stressed that the priorities of emerging countries differ from those of more advanced economies.

In contrast to discussions focused on office jobs automation and the capabilities of advanced AI models, Banga argued that many developing countries could benefit above all from the so-called ‘small AI’, i.e. simpler technological solutions aimed at concrete problems.

“ In emerging markets, conversation is not about great language models. Instead, political and economic leaders focus on practical technology applications capable of improving productivity in key areas, including education, health and agriculture.”.

“The opportunity to create jobs and productivity is enormous,” he concluded.