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    • Opinion
    • Artificial Intelligence

    As AI rises and aid declines, can Davos shape a new compact for development?

    Opinion: At Davos, governments, donors, and institutions could agree that a share of AI-driven efficiency gains in high-income settings be reinvested in frontline services and local capability in lower-income countries.

    By Simon O’Connell // 19 January 2026

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    Heading to Davos from South Sudan, I’m struck by a truth: Official development assistance, or ODA, is in free fall, and the old playbook can’t meet the scale or complexity of today’s challenges.

    Like many others, I’ve long argued that the aid sector does important — often vital — work, while in need of extensive reforms, notably around partnerships and more collaborative approaches, with the focus on outcomes over activities and inputs. That agenda now meets a transformative force: artificial intelligence.

    The opportunity is not AI for its own sake, but how we turn AI-driven efficiency and quality improvements into shared productivity gains — SPGs — that are measured, reinvested, and fairly distributed. SPGs are the paradigm beyond ODA.

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    More reading:

    ► How the development sector is finding its own way with AI

    ► As foreign aid falters, can AI step in? (Pro)

    ► Opinion: Development organizations need an action plan for AI adoption

    • Innovation & ICT
    • Economic Development
    • Democracy, Human Rights & Governance
    • Davos 2026
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    The views in this opinion piece do not necessarily reflect Devex's editorial views.

    About the author

    • Simon O’Connell

      Simon O’Connell

      Simon O’Connell is the CEO of the global development partner, SNV, leading a team of over 1,600 people and ongoing programs in approximately 25 countries. With overall responsibility for SNV, Simon oversees a global portfolio focused on the agri-food, energy, and water sectors and systems interventions that contribute to sustainable, transformational change.

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