World Bank Mobilized $112 Billion Last Year, Banga Says Funding Remains Available

World Bank President Ajay Banga said Tuesday, Oct. 27, that capital remains available despite concerns that artificial intelligence demand is pushing up borrowing costs. He pointed to $112 billion the institution mobilized last year as evidence of the scale of funding activity.

Banga said last year’s total was about three times the amount the World Bank mobilized three years earlier. He said investors may be concerned about circular financing and AI’s business model, even as capital remains available.

He described emerging markets as less hesitant toward investments focused on infrastructure, including bridges and roads, as well as smaller-scale AI uses. Developed economies, by contrast, are seeking financing for large AI use cases. The difference in the scale and type of investments helps explain why Banga sees less hesitation in emerging markets.

Banga also said private capital overseen by the World Bank does not go to governments. He said that distinction helps the institution avoid concerns about debt crises and challenges tied to rising bond yields in some countries. The World Bank was founded in 1944 and aims to reduce poverty and support economic prosperity through partnerships and funding.

Banga said he still believes AI will be transformative and profitable, while acknowledging uncertainty about the challenges ahead. “Everybody sees bumps in the road from here to there, and no one knows when the next bump will come,” he said.

The comments came ahead of a series of central bank rate decisions worldwide. Economists and monetary policymakers are assessing how widespread AI adoption may affect demand for capital and employment. AI could also widen the global jobs gap.