Artificial Intelligence (AI) is proving useful in India across various sectors—ranging from boosting farmers’ income and aiding crop management to screening for TB and answering agriculture-related queries. However, it also poses a risk to call center and entry-level technical jobs. The World Bank highlighted these points in its World Development Report 2026.
The report cites India as a prime example of the practical and cost-effective use of AI. At the same time, it warns that economies reliant on business process outsourcing could see employment impacts as AI automates call center and back-office tasks.
Benefits of AI for Farmers
According to the World Bank, an AI-based weather forecasting system in Telangana helped small farmers adjust their decisions based on weather-related risks. Some farmers increased their agricultural spending by a third, while others achieved net savings of up to $560 per farmer.
The report indicates that the potential benefits of AI are greater in developing countries than in developed ones. In developing economies, less than 10% of jobs are at risk of automation due to AI, whereas in high-income countries, this figure exceeds one-third. Meanwhile, about 16.2% of jobs in developing countries have the potential for productivity gains through AI.
AI-Driven Advice Reaches Millions of Farmers
The report also mentions Odisha’s ‘Ama Krushi’ initiative—now operated as ‘Krishi Samruddhi’—which was launched in 2018 and incorporates AI-based agricultural advisory services.
Having reached approximately 3 million farmers when it came under government ownership in 2022, the service now extends to over 7 million farmers. A 2025 assessment found that the service led to improved farming practices, increased yields, and a reduction in severe crop losses, with a benefit-cost ratio ranging from 9:1 to 15:1.
Additionally, the ‘Kisan e-Mitra’ chatbot, designed for agricultural grievances, provides instant responses in 11 Indian languages. After the integration of advanced AI features, it answered approximately 2.7 million queries in 186 days—a volume nearly seven times greater than the capacity of traditional manual processes.
AI Use in TB Screening
The World Bank also highlighted the use of AI in the health sector. ‘Cough Against TB’—developed by Wadhwani AI and the Government of India’s Central TB Division—screened individuals based on cough sounds and correctly identified nearly nine out of ten people who required further confirmatory testing.
A government assessment in Maharashtra found that computer-based analysis of X-rays for TB screening was more accurate and cost-effective than analysis by radiologists. Large-scale AI-based screening for diabetic retinopathy has also been launched in Tamil Nadu.
Threat to Employment
However, the World Bank warned that AI could impact a crucial pathway to middle-class employment in India. Entry-level jobs—particularly in call centers, software, finance, and business services—could be at risk.
According to the report, AI at an Indian business-process outsourcing (BPO) company acquired the capability to perform tasks previously handled by customer service staff. This illustrates how AI can augment employee capabilities in one context while displacing jobs in another.
Focus on AI Tailored to Local Needs
The World Bank included India among the developing nations striving to develop AI systems suited to local languages and conditions.
According to the report, Sarvam AI has been selected under the government’s ‘IndiaAI Mission’ to develop indigenous AI models. The company plans to create models with 30 billion and 105 billion parameters, trained entirely within India.
The report also cites India’s Unified Payments Interface (UPI) as an example of digital public infrastructure, enabling banks, fintech companies, and payment apps to operate within a shared ecosystem. The World Bank has advised developing countries to focus on adopting existing AI technologies, adapting them to local needs, and building domestic capacity as resources become available.
The report notes that small AI systems can operate offline on mobile phones and laptops, and AI services can be delivered via voice calls and text messages in areas with limited electricity and internet access.
The World Development Report 2026 marks the World Bank’s first comprehensive assessment of AI’s impact on developing economies. According to the World Bank, AI can enable developing nations to achieve progress that might otherwise take a century under normal circumstances. However, this will require reliable electricity, affordable internet, data in local languages, a skilled workforce, and safeguards against discrimination, misinformation, and over-reliance on foreign technology.
