Dhaka, October 7, 2025 — Bangladesh risks falling behind in the global artificial intelligence (AI) race, with the World Bank warning that low digital preparedness and weak human capital could expose its young workforce to job disruption. The findings were published in the World Bank’s South Asia Development Update (October 2025), launched in Dhaka.
The report calls AI a “transformative general-purpose technology” capable of driving productivity and growth—if countries like Bangladesh invest in digital infrastructure, education, and institutional reforms.
Falling Behind in the AI Race
Bangladesh ranks near the bottom of South Asia in AI readiness, reflecting its heavy reliance on agriculture, textiles, and informal services—sectors less exposed to automation but also slower to adopt digital transformation. The World Bank cautioned that as global industries embed AI into value chains, this low exposure could turn into a competitive disadvantage.
While automation remains limited for now, young and moderately educated workers in customer support, data entry, and software services could soon face significant disruption. “AI adoption depends critically on digital infrastructure and human capital—two areas where Bangladesh lags,” the report said.
Digital and Educational Gaps
With only 62% of the population online and the largest rural-urban internet gap among emerging markets (32 percentage points), connectivity remains a major obstacle. Education systems have also failed to align with digital economy needs—only 75% of South Asians are literate, compared to 85% in other emerging markets.
The report also flagged an ongoing technology brain drain, as many of Bangladesh’s skilled AI researchers and engineers continue to seek opportunities abroad.
Opportunities Amid Challenges
Despite these hurdles, the World Bank identified a window of opportunity for Bangladesh. Investments in broadband, stable electricity, and AI-related skills training could help the country leverage its youthful population to drive digital transformation.
AI applications could bring major benefits—enhancing logistics, financial inclusion, and agricultural productivity through predictive analytics. Early initiatives in AI-assisted education and healthcare could also expand access to essential services.
However, without coordinated policy action, the report warns, Bangladesh risks missing this leap. “AI offers Bangladesh the chance to leapfrog into higher productivity—but without strong institutions and reforms, the technology will remain underused,” it said.
South Asia’s Uneven AI Landscape
Across South Asia, AI adoption is fragmented. India leads the region, with AI-skilled jobs commanding a 30% wage premium, while countries like Bangladesh, Nepal, and Bhutan trail behind. Yet, 70% of AI-exposed roles in South Asia are complementary, where human skills and AI work in tandem—particularly in education, healthcare, and law.
The World Bank urged governments to focus on AI-friendly infrastructure, data governance, and education reforms, noting that even public institutions could use AI to enhance efficiency and service delivery.
For Bangladesh, the message is clear: invest in digital readiness now—or risk an economic future where the workforce is left behind by technology.
