Bangladesh makes AI gains in healthcare, faces welfare challenges: WB

Inforgraphics: TBS

Bangladesh is making notable progress in using artificial intelligence to improve healthcare and public services, but gaps in infrastructure, governance and social inclusion could limit its long-term benefits, according to the World Development Report 2026 released by the World Bank today (6 August).

The report identifies Bangladesh as an example of how developing countries can adopt and adapt existing AI technologies to meet local needs instead of building costly frontier AI models.

It says AI has the potential to significantly boost productivity in developing economies where economic growth is at its weakest in three decades, provided governments invest in reliable power, internet connectivity, digital skills and institutional capacity.

Clinics using AI-powered medical imaging to detect diabetic retinopathy, a leading cause of preventable blindness, have increased patient screening capacity by up to 40% a day. 

The technology is helping address shortages of specialist doctors and radiologists by supporting, rather than replacing, healthcare professionals.

According to the World Bank, such applications demonstrate AI's greatest potential in developing countries by expanding access to essential services and improving productivity.

Despite these gains, the report cautions against relying solely on AI for social protection programmes.

A study using mobile phone data to identify poor households found that the algorithm correctly identified only 32% of eligible families, leaving 68% unrecognised. Around 6% of households could not be matched with any mobile phone records, increasing the risk of excluding some of the country's most vulnerable people from welfare programmes.

Public confidence in the technology also remained limited, with only 45% of surveyed households considering the AI-based targeting system fair.

The findings suggest that while AI can improve efficiency, poor-quality data and weak system design can deepen inequalities if adequate safeguards are not in place.

Policy push gathers pace

Bangladesh is preparing a National AI Policy for 2026-2030 to promote responsible, inclusive and accountable use of the technology.

The draft policy proposes establishing a National Data Governance Authority to oversee AI deployment and data regulation. It also builds on the government's Aspire to Innovate (a2i) programme, which has driven digital public services over the past decade.

Authorities are also forming a multi-stakeholder advisory council comprising representatives from academia, industry and civil society to guide AI governance.

The report notes that Bangladesh is also moving towards ratifying the Council of Europe Framework Convention on AI, the world's first legally binding international treaty on artificial intelligence.

Structural barriers remain

The World Bank says Bangladesh still faces major challenges in scaling AI adoption.

In the country's garment sector, for example, automated cutting and sewing technologies have been available for years but remain underused because relatively low labour costs reduce the incentive for automation.

Businesses also cite regulatory complexity and compliance costs as barriers to adopting advanced technologies.

The report adds that inadequate electricity supply, limited digital infrastructure, skills shortages and weak institutional capacity continue to constrain AI adoption.

To improve connectivity, Bangladesh has opened its market to satellite internet providers, including Starlink and OneWeb, to expand broadband access in remote areas. 

Experts, however, say greater investment is also needed in local data infrastructure, computing capacity and digital skills.

Growth opportunity

The report estimates that AI could raise productivity in 16.2% of jobs in developing countries, close to the 18.7% projected for high-income economies. 

Meanwhile, only 4.5% of jobs in developing economies are considered at risk of automation, compared with 14.2% in wealthier countries, suggesting AI is more likely to complement workers than replace them.

"AI has thrown developing economies a lifeline, and they should seize it," said Indermit Gill, the World Bank Group's chief economist. 

He said countries do not need massive data centres or sophisticated AI models to benefit, but must move quickly to strengthen infrastructure, skills and governance.

The report concludes that Bangladesh's experience illustrates both the promise and the challenges of AI adoption. While healthcare applications demonstrate the technology's potential to improve lives, shortcomings in welfare targeting underscore the need for stronger institutions, better data and greater public trust to ensure AI delivers inclusive and sustainable development.