World Bank president backs small AI for emerging economies over US–China model race
Thailand’s manufacturing strengths offer opportunities in global technology supply chains and the data centre boom, but investment must support its goal of becoming a high-income economy by 2037, the World Bank says
BANGKOK — Thailand must translate investment and economic growth into better jobs and higher incomes to achieve its ambition of becoming a high-income economy by 2037, World Bank Group President Ajay Banga said.
Speaking during the IMF–World Bank Group Annual Meetings in Bangkok, Banga said Thailand was relatively well positioned to benefit from shifting global supply chains, including demand generated by the expansion of large data centres.
Thailand’s manufacturing capabilities could help it capture opportunities in technology supply chains, while tourism, agribusiness and digital services could support its next phase of economic transformation.
“I think what Thailand is doing, the mix of agribusiness, tourism as well as high-value manufacturing, which tends to be less labour intensive, is not a bad combination for a country like that. I feel like you have to create the right return on capital, but also the right return for your labour to be able to get this economy to move in the right direction,” he said.
A World Bank report released in September said Thailand would need average annual real GDP-per-capita growth of 5.4% over the coming decade to reach high-income status by 2037. It identified productivity gains, technology adoption, stronger skills and a shift towards higher-value economic activities as key priorities.
However, Banga cautioned that economic growth alone was insufficient if the benefits failed to reach workers and households, saying that investment should generate jobs, raise incomes and support consumption, rather than allow returns to capital to rise while ordinary workers see limited gains.
His remarks carry implications for ASEAN economies seeking to attract foreign direct investment while ensuring that local businesses and workers benefit. Investment in advanced manufacturing and digital infrastructure can strengthen regional competitiveness, but its wider economic impact will depend on how effectively countries develop local firms, skills and employment opportunities.
Banga also highlighted the importance of mobilising private capital as governments face fiscal constraints. The World Bank Group mobilised a record US$112 billion in private capital in fiscal year 2026, according to the institution. Banga has emphasised the importance of reducing investment barriers and using tools such as guarantees to bring more private funding into developing economies.
Small AI offers a practical route to productivity and jobs
Banga urged emerging economies to focus on practical applications of artificial intelligence rather than trying to compete directly with the United States and China in developing the largest AI models.
He described this approach as “small AI”, accessible, affordable and purpose-built applications tailored to local needs and constraints in areas such as healthcare, agriculture, education and financial services.
Many emerging markets lack the computing capacity, reliable electricity, specialised talent and capital needed to compete at the frontier of AI development. Practical applications could nevertheless help businesses and public services improve productivity without requiring the same scale of investment.
“World Bank has launched in India with farmers and rolling to other parts of the world, an illiterate farmer can use a 3G phone to point at the back of a leaf, and it will say, that disease, this insecticide, press a button and buy it. And India has given bank accounts to all its people. It actually works.
In healthcare in Indonesia, we have people walking into a clinic, showing a rash.These clinics have a nurse, a medical diagnostic technician, and a midwife. I'm giving you just day-to-day examples,” the President said.
For Thailand and its ASEAN neighbours, such applications could help smaller enterprises adopt digital technology and improve their competitiveness. Small and medium-sized enterprises are important sources of employment across the region, but many face barriers to financing, technology adoption and workforce development.
Banga stressed that reliable electricity and internet connectivity must come before countries can fully benefit from AI. Without these foundations, emerging economies risk missing out on productivity gains and falling further behind countries with stronger digital infrastructure.
Small AI, private capital mobilisation and support for small and medium-sized enterprises are among the World Bank Group’s priorities at this year’s Annual Meetings. Against a backdrop of energy-price shocks, inflation and high public debt, Banga’s message was that developing economies need to broaden the sources of investment and make technology work for more businesses and workers.
For Thailand, the challenge is not simply to attract more investment or adopt AI, but to turn both into more productive firms, better jobs and higher household incomes — outcomes that will be central to its 2037 ambition.
