Kigali, Rwanda – Artificial intelligence is advancing at unprecedented speed, redefining how people work, learn and access services across the world.
Yet as its influence expands, a new World Bank report warns that the AI revolution risks deepening global inequality unless countries deliberately invest in the foundations that allow the technology to deliver broad-based development gains.
The Digital Progress and Trends Report 2025: Strengthening AI Foundations presents an intuitive assessment of the global AI landscape.
While artificial intelligence holds immense promise for productivity growth, job creation and service delivery, its benefits remain unevenly distributed, heavily concentrated in high-income economies.
For developing countries such as Rwanda, the report argues, the challenge is not whether to adopt AI, but how to do so strategically and sustainably.
A widening AI gap amid rapid global adoption
The report shows that AI innovation is still dominated by a small group of advanced economies. Low- and middle-income countries, by contrast, play a limited role in AI creation even as their citizens increasingly consume AI-powered tools.
High-income countries account for the vast majority of advanced AI models, start-ups, computing infrastructure and venture capital investment, despite representing a minority of the global population.
Generative AI applications have spread faster than any previous digital technology, reaching hundreds of millions of users in just two years. Middle-income countries now account for more than 40 percent of global usage, reflecting growing digital engagement.
Low-income countries, however, remain largely excluded, with minimal access due to gaps in connectivity, affordability and skills.
This imbalance, the report cautions, could translate into a deeper economic divide if countries without strong digital foundations are unable to move beyond passive consumption toward meaningful AI adoption in businesses, public services and local innovation ecosystems.
“Small AI” and the development opportunity for emerging economies
Despite these disparities, the report identifies a powerful opportunity for developing countries through what it describes as “small AI”, affordable, localized applications designed to run on everyday devices and address practical challenges.
These solutions are already delivering tangible results in sectors such as agriculture, education and health, where AI supports farmers with agronomic advice, teachers with lesson planning and health workers with patient monitoring.
Rather than competing to build large-scale foundational AI models, the report suggests that countries like Rwanda can gain faster and more inclusive benefits by adapting existing technologies to local needs.
This approach lowers costs, reduces barriers to entry and allows AI to complement human skills rather than replace them.
Small AI, the report notes, can help countries leapfrog traditional development constraints, but only if supported by coherent policy frameworks and long-term investment in digital readiness.
The four pillars that will determine Rwanda’s AI future
At the core of the report is a framework built around four critical foundations which are connectivity, compute, context and competency. The determine whether AI can take root in any economy.
Connectivity remains the starting point. While global internet access is expanding, major gaps persist in speed, affordability and reliability, particularly in low-income settings. Without dependable broadband and electricity, AI adoption remains out of reach.
Compute, described as the “new electricity” of the AI era, is even more concentrated. Most global data centers and cloud infrastructure are located in advanced economies, forcing developing countries to rely on imported services.
Strategic choices around cloud partnerships, regional infrastructure and data regulation will shape future competitiveness.
Context is equally decisive. AI systems are only as effective as the data that train them. The dominance of English-language content limits relevance for many societies, highlighting the need for local data, languages and cultural representation in AI development.
Finally, competency where digital skills emerge as the most critical enabler. Demand for AI-related skills is growing faster in developing economies than in high-income countries, yet supply remains constrained by education gaps and brain drain.
Without sustained investment in human capital, the report warns, countries risk missing out on AI-driven growth. Countries that strengthen their digital foundations now will be best positioned to turn artificial intelligence into a driver of inclusive growth rather than a new source of inequality.
For Rwanda, which has made digital transformation a national priority, there is urgency of deepening investments in these four pillars. AI is not portrayed as a shortcut to development, but as a powerful tool whose impact depends on policy choices made today.
