UPSC Prelims Practice Questions — Union Minister Shri Ashwini Vaishnaw Launches World Bank Group’s ‘World Development Report 2026: The Promise of Artificial Intelligence’ in New Delhi

Q1. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Generative AI is estimated to place a larger share of existing jobs at risk of automation in high-income countries than in low- and middle-income countries.
  2. Clerical and other desk-based cognitive occupations, whose tasks are the most exposed to generative AI, account for a larger share of employment in high-income economies than in low-income ones.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q2. According to a 2026 World Bank estimate, 4.5% of existing jobs in low- and middle-income countries are at risk of automation by generative AI, against 14.2% in high-income countries. The share of jobs whose productivity AI could meaningfully boost is 16.2% in developing economies and 18.7% in high-income countries. Which of the following inferences can validly be drawn from these figures alone?

  1. In developing economies, the share of jobs that AI could make more productive is more than three times the share it puts at risk of automation.
  2. AI will widen the productivity gap between high-income and developing economies.
  3. The gap between the two groups of countries is much wider for automation exposure than for productivity-boosting potential.
  4. The lower automation exposure of developing economies shows that their workforces are more digitally skilled.
  • A. 2, 3 and 4 only
  • B. 1, 3 and 4 only
  • C. 1 and 2 only
  • D. 1 and 3 only

Q3. Consider the following assertion: Rapid uptake of AI applications by users in middle-income countries does not, by itself, ensure that these countries will capture the economic gains of AI. Which of the following statements support/supports the above assertion?

  1. The gains from a general-purpose technology depend on complementary foundations such as reliable electricity, connectivity, skills and capable institutions.
  2. Adapting AI solutions to local conditions, rather than merely adopting existing tools, is expected to deliver the biggest benefits.
  3. The time successive general-purpose technologies took to reach lower-income countries fell from about 80 years for the steam engine to about 20 years for the internet.
  4. Middle-income countries accounted for about half of ChatGPT's global traffic within six months of its launch.
  • A. 1, 2 and 4 only
  • B. 3 and 4 only
  • C. 1 and 2 only
  • D. 1, 2, 3 and 4

Q4. Consider the following statements: Which of the following is correct in respect of the above statements?

  1. Data-driven AI weather models have made physics-based numerical weather prediction and its supporting observation networks dispensable for national meteorological services.
  2. Machine-learning weather models are trained on reanalysis datasets, which are produced by assimilating past observations into physics-based atmospheric models.
  • A. Both Statement-I and Statement-II are correct and Statement-II explains Statement-I
  • B. Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I
  • C. Statement-I is correct, but Statement-II is incorrect
  • D. Statement-I is incorrect, but Statement-II is correct

Q5. With reference to the institutions of the World Bank Group, consider the following statements: Which of the statements given above is/are NOT correct?

  1. The International Bank for Reconstruction and Development (IBRD) provides loans and policy advice to middle-income and creditworthy low-income countries.
  2. The principal role of the International Finance Corporation (IFC) is to extend grants and low-interest loans to the governments of the poorest countries.
  3. The International Centre for Settlement of Investment Disputes (ICSID) is devoted to settling international investment disputes.
  • A. 2 only
  • B. 1 only
  • C. 2 and 3 only
  • D. 1, 2 and 3

Q6. Before committing capital, a foreign firm planning a power plant in a developing country wants cover in advance against political risks such as the host government expropriating the plant or blocking the transfer of profits abroad. Which World Bank Group institution's core instrument is designed for this purpose?

  • A. International Centre for Settlement of Investment Disputes
  • B. Multilateral Investment Guarantee Agency
  • C. International Finance Corporation
  • D. International Development Association