AI weather forecasts save TG farmers up to $560: World Bank

Washington: Artificial Intelligence-powered weather forecasts helped small farmers in Telangana save as much as USD 560 by altering their behaviour in response to specific risks, a World Bank report said.

Citing a Telangana study and other examples, the World Bank urged developing countries to speed up the adoption of small, low-cost artificial intelligence tools to improve the lives of millions.

The “World Development Report 2026: The Promise of Artificial Intelligence”, released on Tuesday, said among economic impacts, AI can help millions of small businesses and farmers become more productive.

“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,” the report said, citing a 2025 study conducted in Medak and Mahbubnagar districts of Telangana.

It said among social impacts, predictive AI analytics and decision support for back-office administrative work in government can have large payoffs. The report highlighted that AI-generated weather forecasts helped farmers – who relied little on information from the government and extension agents – make better production and investment choices.