AI Growth May Exclude Developing Nations, Says UNCTAD
Artificial Intelligence is projected to reach a staggering $4.8 trillion market value by 2033 — almost the size of Germany’s economy. But a new UN Trade and Development (UNCTAD) report warns this boom might not be evenly shared. The benefits of AI remain concentrated among a few major corporations, primarily in the U.S. and China, raising alarms about global inequality.
40% of Jobs at Risk Worldwide
The report reveals AI could impact up to 40% of jobs across the world, disproportionately affecting countries that depend on low-cost labor. AI-driven automation tends to favor capital over labor, which could erode the competitive edge of developing nations and amplify income disparities.
A Highly Concentrated Market
Just 100 firms dominate 40% of global AI R&D spending, highlighting the tech’s centralization. Giants like Apple, Microsoft, and Nvidia already boast market capitalizations rivaling the GDP of the African continent. Meanwhile, 118 countries — mostly in the Global South — are currently left out of key global AI governance forums.
UN Pushes for Inclusive AI Development
While AI poses risks, the report also emphasizes its potential to create new industries and empower workers — if nations invest in reskilling and upskilling programs. UNCTAD urges inclusive AI governance and proposes measures like AI public disclosures, open-source models, shared infrastructure, and knowledge-sharing initiatives.
The Path Forward: Collaboration Over Competition
The report concludes that AI can become a driver of innovation and global prosperity — but only with international cooperation, inclusive governance, and strategic investment. Without it, AI may end up reinforcing existing divides rather than closing them.
