The World Bank Group said in its October Latin America & the Caribbean Economic Update that the rapid diffusion of Artificial Intelligence (AI) can become a potential catalyst for productivity and growth.
The bank also said however that a critical distinction must be drawn: Digital access does not guarantee productive use, and algorithms do not automatically generate aggregate productivity.
“Artificial intelligence holds real promise for development in the region, much of it through what the World Development Report 2026 calls “small AI”: low-cost, practical applications, small in model size or narrow in scope, that solve specific problems in low-resource settings and can reach millions through basic phones,” the report said.
