About the World Bank Group About IFC The World Bank Group works to create a world free ofpoverty on a livable planet through a combination offinancing, knowledge, and expertise. It consists of the WorldBank, including the International Bank for Reconstructionand Development (IBRD) and the International Develop-ment Association (IDA); the International FinanceCorporation (IFC); the Multilateral Investment GuaranteeAgency (MIGA); and the International Centre for Settlementof Investment Disputes (ICSID). For more information, visitwww.worldbank.org,ida.worldbank.org,www.miga.org,www.ifc.org, andwww.icsid.worldbank.org. IFC — a member of the World Bank Group — is the largestglobal development institution focused on the privatesector in emerging markets. We work in more than 100countries, using our capital, expertise, and influence tocreate markets and opportunities in developing countries.In fiscal year 2025, IFC committed a record $71.7 billion toprivate companies and financial institutions in developingcountries, leveraging private sector solutions andmobilizing private capital to create a world free of povertyon a livable planet. For more information, visitwww.ifc.org. AcceleratingArtificialIntelligenceInvestmentinEmergingMarkets Lana GrafAnastasia NedayvodaEveline Smeets Contents Foreword.................................................................................................................................................................................5Acknowledgments..............................................................................................................................................................6Abbreviations.........................................................................................................................................................................7Executive Summary............................................................................................................................................................8CHAPTER 1.Introduction...........................................................................................................................................10CHAPTER 2.Investing in Artificial Intelligence in Emerging Markets.....................................................132.1.Rationale for Investing in Artificial Intelligence in Emerging Markets.....................................132.2.Anticipated Impacts of Investing in Artificial Intelligence in Emerging Markets.................142.3.Challenges of Investing in Artificial Intelligence in Emerging Markets.....................................16CHAPTER3.Proposed Approach to Artificial Intelligence Investment in Emerging Markets....18CHAPTER 4.The Ecosystem Lens..........................................................................................................................204.1.AI-Enabling Elements.....................................................................................................................................204.2.AI-Enabled Solutions: Vertical AI...............................................................................................................25CHAPTER5.The Structural Elements Lens........................................................................................................275.1.Data Availability and Digitization...............................................................................................................275.2.Energy and Construction Technologies.................................................................................................30CHAPTER6.Adoption and Diffusion of Artificial Intelligence in Emerging Markets......................32References............................................................................................................................................................................34 Foreword solutions. Others, with stronger preexisting infrastructure,will be positioned to develop and scale AI domestically andthrough international trade. There is no single pathway.This handbook offers a framework to help navigate thiscomplexity, building on two proposed lenses. The EcosystemLens maps the necessary components to develop a thrivingAI ecosystem, including hard and soft infrastructure, AIbuilding blocks such as foundational models, and verticalapplications across sectors. The Structural Elements Lenscompliments this by articulating broader enablers, suchas energy and data, that sustain the ecosystem over time.Together, they give stakeholders a practical basis for diag-nosing where a given market stands and where interventioncan create the necessary circumstances for growth. The rapid advance of artificial intelligence (AI) presentsemerging markets with a generational opportunity andposes serious development risks if countries are left behind.For countries that can build the right conditions, AI offers achance to accelerate development, improve business pro