AI weather forecasts helped Telangana farmers save up to USD 560: World Bank

Washington,UPDATED: Aug 9, 2026 18:34 IST

Artificial Intelligence-powered weather forecasts helped small farmers in Telangana save as much as USD 560 by changing their behaviour in response to specific risks, according to a World Bank report. Citing the Telangana study and other examples, the Bank urged developing countries to speed up the use of small, low-cost AI tools to improve the lives of millions.

The report, titled World Development Report 2026: The Promise of Artificial Intelligence and released on Tuesday, said AI can help millions of small businesses and farmers become more productive. It is the first comprehensive assessment of AI's implications for developing countries and examines how businesses and governments in these countries have begun using the technology.

Referring to a 2025 study conducted in Medak and Mahbubnagar districts of Telangana, the report said, "In the Indian state of Telangana, for example, an AI weather forecasting system enabled smallholder farmers to alter their behaviour in response to specific risks, causing some to increase farm expenditures by as much as one-third and others to reap net savings of as much as USD 560 per farmer." It added that AI-generated weather forecasts helped farmers, who relied little on information from the government and extension agents, make better production and investment choices.

The report said that, beyond economic gains, AI can also deliver major social benefits. It said predictive AI analytics and decision support for back-office administrative work in government can have large pay-offs. It also suggested that governments could use AI to improve tax collection, social programmes, disaster response, healthcare and education.

The findings showed that AI is already helping people, businesses and governments solve problems, analyse information, improve forecasts and deliver services on a larger scale. The report recommended that developing countries focus on small AI applications spread widely across the economy, instead of making big investments in large language models concentrated in a few firms.

"Today's developing economies missed the first Industrial Revolution and spent the next two centuries paying the price. They cannot afford to miss this one," said Indermit Gill, Senior Vice President and Chief Economist of The World Bank Group. The report also said developing countries should leave it to the rich world to agonise over whether AI will one day doom humanity, while they focus on practical uses that can improve productivity and public services.

In sum, the World Bank said the Telangana example shows how small, affordable AI tools can deliver direct gains for farmers, while wider use of such applications could help developing countries improve livelihoods, public services and economic productivity.

With PTI Inputs

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