Concluding Session of First MCDF Digital Workshop Series Explores AI Infrastructure Development Pathways

The increasing importance of artificial intelligence (AI) for sustainable growth and AI infrastructure development challenges and opportunities were explored during the fourth and final session of the first Multilateral Cooperation Center for Development Finance (MCDF) Digital Infrastructure Introductory Workshop Series held virtually on 20 May.

The workshop series was co-organized with the African Development Bank (AfDB), CAF—Development Bank of Latin America and the Caribbean, the International Fund for Agricultural Development (IFAD), and World Bank. The final session brought together global AI experts, who emphasized the value of institutional collaboration in positioning developing countries to harness AI responsibly and inclusively.

View the Recording of the Workshop on AI Infrastructure

Download the Workshop Speakers’ Presentations

In welcome remarks on behalf of the cohosts, Ms. Pieternel Boogaard, Managing Director of IFAD’s Office of Technical Delivery, described examples of how IFAD is working with its partners to harness AI’s potential to help people in rural areas, such as flood warnings, health analytics, and agricultural extension services. She called on governments to put in place supportive policies, International Financial Institutions to help de-risk projects, and the private sector to deliver technological innovation.

Following an introductory presentation by Mr. Ivan Rossignol, MCDF’s senior advisor on digital infrastructure, the session featured presentations and discussion led by participants from academia, the private sector, and IFIs. The key takeaways are outlined below:

• AI’s Prevalence is Prompting a Governance Rethink

Prof. Lan Xue, Dean of Tsinghua University’s Schwarzman College and Chair of China’s National Expert Committee on AI Governance, said that governance frameworks must address new physical and social infrastructure, market dynamics, particularly in terms of competition policy, and risks which are emerging with the rapid growth of AI technology. He explained that China is taking an ‘agile’ or ‘adaptive’ approach to regulating AI to strike a balance between facilitating innovation and mitigating the risks. It starts by setting general guidelines to give space to AI companies but will quickly implement stricter regulations if issues arise, he noted.

• AI Financing Hinges on Regulatory Setup

The complexity and decentralized development of regulation of digital infrastructure and AI generate market imperfections, competitive disadvantages for some countries, and significant challenges for investors, noted Ms. Shannon Yavorsky of Orrick. She expressed optimism that leading AI economies will gradually agree on some core principles and clarify what constitutes regulation that supports innovation and growth while protecting people’s rights.

• Country-Level Gaps in AI Development are Rapidly Widening

Mr. Gaurav Nayyar, Director of the World Bank Group’s World Development Report on AI, gave a preview of the report’s key findings, ahead of its public launch. He highlighted inequalities in AI penetration and usage rates between countries and regions, emphasizing that they are the direct consequence of a lack of basic “analog infrastructure” needed for AI adoption, such as power supplies and digital literacy. Mr. Nayyar called for targeted policy interventions and investments to bridge these gaps and ensure more equitable access to AI technologies. He also noted IFIs’ role in enabling developing countries to build the necessary infrastructure and skills to actively participate in the AI-driven economy.

• Government-Private Sector Dynamics Shaping AI Outlook

A “government-driven” approach versus a “private sector push” is shaping AI development, participants agreed. Mr. Tiago Peixoto, Digital Government Coordinator for the European Union and Western Balkans at the World Bank Group, said the World Bank does not rule out the appropriateness of some industrial policy support for digital sector growth. He said that the private sector is developing AI agents that can intervene on behalf of people to improve their access to public services and if governments do not intervene and turn these agents into a new form of digital public infrastructure that everyone can access equally, it risks generating monopolies and inequality.