UNCTAD report urges inclusive AI development to avoid global divide
AI’s rise could reshape global jobs – but leave many behind, the report warns.
The UN Conference on Trade and Development (UNCTAD) has released its Technology and Innovation Report 2025, highlighting the transformative potential of artificial intelligence (AI) while warning of significant risks related to inequality and exclusion. The report projects that the AI market will reach a staggering $4.8 trillion by 2033, comparable to Germany’s economy, but emphasises that access to AI infrastructure and expertise remains concentrated in a few developed economies, particularly the United States and China.
Key findings:
- Economic impact: AI is expected to reshape industries worldwide, potentially impacting up to 40% of global jobs. Automation may favour capital over labour, reducing the competitive edge of low-cost labour in developing economies. However, AI also has the potential to create new industries and empower workers if investments in reskilling and workforce adaptation are prioritised.
- Global inequality: Less than one-third of developing countries have national AI strategies, and 118 nations—mostly in the Global South—lack representation in global AI governance discussions. This imbalance risks deepening technological divides between nations.
- Corporate dominance: Just 100 companies, primarily based in the U.S. and China, account for 40% of global corporate R&D spending on AI. Leading tech giants such as Apple, Nvidia, and Microsoft have market values rivalling the GDP of entire continents like Africa.
Recommendations:
UNCTAD calls for immediate action to ensure AI benefits are equitably distributed:
- Investments in infrastructure: Developing economies must strengthen digital infrastructure, data capabilities, and workforce skills to harness AI’s potential.
- Inclusive governance: International cooperation is needed to co-create a global AI framework that prioritises people over technology.
- Open innovation: Promoting open-source models and shared AI facilities can democratise access and foster inclusive growth.
- Capacity building: Initiatives such as South-South cooperation can help developing countries address common challenges and seize opportunities.
UNCTAD Secretary-General Rebeca Grynspan stressed that strategic investments, inclusive policies, and global collaboration are essential for ensuring that AI drives sustainable development rather than exacerbating existing inequalities
