As the World Bank and IMF convene their annual spring meetings this week, the role of artificial intelligence (AI) in promoting economic development is certain to be a prominent theme. Policymakers are increasingly focused on harnessing AI’s immense potential to reshape economies, transform industries, and redefine global competitiveness -- and to ensure that we focus not only on “misuse” of AI, but also on “missed uses” of AI.
Reflecting this understanding, more than 70 countries have adopted national AI strategies and policies, outlining diverse approaches to creating vibrant AI ecosystems. While many countries are still in the early stages of translating these strategies into action, others are emerging as AI Pioneers, moving beyond policy blueprints to make tangible investments in AI development and adoption. Our newly released report -- AI Pioneers: How Countries are Seizing the AI Opportunity -- highlights how some of these leading countries are approaching this transformative moment.
The report explores how countries worldwide are accelerating AI adoption by building across the three pillars of an AI Opportunity Agenda: building robust AI infrastructure, developing a skilled workforce, and fostering a supportive regulatory environment. It provides actionable strategies for policymakers at every stage of their AI journey, illustrating best practices with real-world examples and offering benchmarks for effectively harnessing this transformative technology.
The report highlights key strategic measures across the 3 pillars:
- Investing in Robust AI Infrastructure: Governments are strengthening the foundations for AI by implementing "cloud first" policies; attracting investment in data centers and cloud regions through incentives and streamlined regulations; forging partnerships to expand crucial subsea and terrestrial connectivity; and ensuring sufficient energy capacity to meet AI's demands.
- Cultivating a Skilled Workforce: National efforts to build AI talent and readiness include driving AI adoption within public services; integrating AI education from primary schools to university curricula; developing recognized certifications for AI skills; and preparing small and medium-sized enterprises (SMEs) to leverage AI tools.
- Establishing a Supportive Regulatory Environment: Countries are fostering responsible AI innovation by adopting risk-based regulatory approaches; publishing codes of conduct and standards for ethical AI deployment; clarifying rules around fair use and text/data mining (TDM); and conducting competitiveness assessments to ensure that regulatory frameworks are calibrated to maximize the AI opportunity.
Attracting AI Investment
Making progress on all three pillars can help countries attract the investments needed to build technical infrastructure for broad AI adoption. Attracting foreign investment is especially vital for countries that lack the capital or technical capacity required to build AI infrastructure on their own.
Over the past five years, foreign direct investment (FDI) in AI infrastructure has surged globally, even as overall FDI has remained sluggish. In 2024, greenfield FDI into data centers reached $144 billion, about 9% of total global FDI, and these funds are increasingly being directed outside of traditional investment hubs.
While not every country needs its own dedicated data center to harness the benefits of AI, investment in data centers can spark local economic development in areas like network infrastructure, specialized manufacturing (e.g., server hardware), and the expansion of energy capacity.
Many data center projects also incorporate training programs to help local communities acquire the skills needed to work with advanced technologies. For example, Google’s most recent data center investments in Mexico, Uruguay, Thailand, South Africa, and Malaysia all involve skills training programs conducted in partnership with local education institutions and training centers.
Countries typically attract higher levels of FDI when they possess a strong business climate and reliable institutions. This is especially true for AI infrastructure, which involves large, immovable assets. Companies in search of investment opportunities gravitate toward countries that enact policies that encourage innovation, offer clear and predictable tax policies, and provide reliable, cost-effective energy solutions — all crucial factors in creating a favorable environment for technology advancement.
