The World Bank and the International Monetary Fund (IMF) have warned that artificial intelligence (AI) could worsen the employment crisis in Nigeria and other developing economies unless governments and businesses take urgent steps to prepare workers and harness the technology for job creation.
IMF Managing Director, Kristalina Georgieva, issued the warning at the Small AI: More and Better Jobs event during the IMF-World Bank Annual Meetings in Bangkok, Thailand, describing AI as a “slow-moving tsunami”.
Georgieva said approximately 40 per cent of jobs globally could be affected by AI through changes in job responsibilities, reduced demand for certain roles or outright job losses. She noted that the impact would vary across countries, industries and occupations.
She stressed the need for governments to understand the implications of AI adoption and equip workers with the skills required to adapt to the changing labour market.
World Bank Advocates AI-Driven Job Creation
World Bank Group President, Ajay Banga, said the institution was prioritising job creation to ensure that economic development translates into employment opportunities.
“The bank’s entire focus has to be on jobs,” Banga said, emphasising that AI should be used to improve productivity and support employment rather than simply replace human workers.
He explained that affordable and practical AI tools could help schools, healthcare providers and agricultural systems improve their services and reach more people.
Using agriculture as an example, Banga described how a farmer could take a photograph of a diseased crop with a basic mobile phone and receive guidance on treatment.
Such technology could also connect farmers to essential resources, including improved seeds, fertiliser, credit facilities, insurance and market information.
In healthcare, AI-powered tools could assist frontline health workers in assessing patients and connecting those requiring specialised treatment to appropriate medical services.
What ‘Small AI’ Means for Nigeria
The approach, known as “Small AI”, focuses on developing and deploying affordable AI applications suited to local languages, infrastructure, economic needs and available resources.
Rather than depending solely on expensive and sophisticated AI systems, the model promotes practical solutions that address everyday challenges in developing economies.
The World Bank’s October 2026 Africa Economic Update identifies Nigeria, alongside Kenya and South Africa, as one of Africa’s leading centres of AI activity. However, the report notes that adoption remains at an early stage.
It highlights agriculture, education, healthcare, finance, logistics and public administration as sectors where AI could improve productivity and support economic development.
Infrastructure, Digital Skills Remain Major Challenges
Despite the opportunities, the World Bank warns that several challenges could slow AI adoption across African countries.
These include unreliable electricity supply, inadequate internet connectivity, limited digital skills and poor-quality data.
For Nigeria, addressing these barriers will be essential to expanding access to AI tools and enabling businesses, farmers, healthcare workers and other professionals to benefit from the technology.
The broader challenge is to ensure that AI adoption supports economic growth and creates productive employment opportunities rather than intensifying existing pressures in the labour market.
As AI continues to reshape industries worldwide, the World Bank and IMF are urging governments and businesses to prepare workers for the transition and ensure that the benefits of technological advancement translate into better jobs and improved livelihoods.