The United Nations has disclosed that Artificial Intelligence is on track to reach a staggering $4.8 trillion in market value by 2033, comparable to the size of Germany’s economy, yet its benefits remain unequally distributed.
Furthermore, it notes that leading tech giants, such as Apple, Nvidia, and Microsoft, that stand to benefit from the AI boom have a market value that rivals the gross domestic product of the entire African continent.
According to a new report by the United Nations Conference on Trade and Development (UNCTAD), it disclosed that AI is transforming economies, creating opportunities but also posing risks of greater inequality.
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Part of the report reads,
“Artificial intelligence (AI) is transforming economies, creating opportunities but also posing risks of greater inequality. UNCTAD warns that while AI can be a powerful tool for progress, it is not inherently inclusive. Countries should act now by investing in digital infrastructure, building capabilities, and strengthening AI governance to harness the AI potential for sustainable development.”
UNCTAD Secretary-General Rebeca Grynspan underlined the importance of ensuring people are at the center of AI development, calling for stronger international cooperation to “shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework.
Notably, the UNCTAD estimates that AI could impact up to 40% of jobs globally, raising the specter of widespread job displacement. This displacement is not limited to traditional blue-collar roles but is increasingly shifting toward white-collar professions as AI systems grow more sophisticated.
The UN highlights that this transformation could exacerbate economic inequality, particularly between nations. Wealthier countries with the resources to invest in AI infrastructure may see substantial economic gains, potentially creating markets rivaling the size of major economies by the early 2030s. In contrast, developing nations, lacking similar access to technology and training, risk falling further behind, deepening global disparities. To address these challenges, the UN is calling for proactive labor policies.
To set up effective AI policies, the UN noted that countries should consider three key leverage points; infrastructure, data, and skills. It emphasized that strategic positioning in these areas will determine whether nations can adopt AI effectively, foster local innovation, and align AI development with their socioeconomic needs.
The UNCTAD further noted that it provides expertise to help developing countries assess their strengths and design policies that build resilient innovation systems.
To bridge the widening AI divide, UNCTAD outlines several recommendations for inclusive global growth. These include:
- Establishing AI public disclosure mechanisms
- Promoting shared AI infrastructure
- Supporting the development and adoption of open-source AI models
- Creating platforms to share AI knowledge and resources
AI is shaping the world’s economic future, yet 118 countries, mostly in the Global South are absent from major AI governance discussions. As AI regulation and ethical frameworks take shape, the UN posits that developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few.
Aside from the displacement of jobs by AI, the UN noted that the advanced technology is not just about replacing jobs, but will also create new industries and empower workers. However, it disclosed that investing in reskilling, upskilling, and workforce adaptation is essential to ensure AI enhances employment opportunities rather than eliminating them.
The UN summarised the report by stating that AI can be a catalyst for progress, innovation, and shared prosperity but only if countries actively shape its trajectory. This means shifting the focus from technology to people, putting people at the center of AI development. Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides.