United Nations warns of artificial intelligence creating a widening digital divide

With artificial intelligence (AI) on course to become a US$4.8 trillion global market by 2033 - roughly the size of Germany’s economy - a newly released report from the United Nations has warned of the risk of growing inequality in the AI landscape

The Technology and Innovation Report 2025, released last week by the UN Conference on Trade and Development (UNCTAD), emphasises that while AI promises prosperity, innovation and transformation, its development risks creating risk widening a deep and dangerous divide.

UNCTAD’s projections reveal a staggering growth trajectory for AI and an estimate that it will impact up to 40% of global jobs.

Noting that while the technology brings new opportunities, especially through productivity gains and new industries, AI also raises serious concerns about automation and job displacement - especially in economies where low-cost labour has been a competitive advantage.

It states “automation powered by AI tends to favour capital over labour (which) could erode the competitive edge of many developing economies if we do not invest in upskilling and education.”

At the same time, 118 countries - mostly from the Global South - are missing from global AI governance discussions altogether.

The report shows that just 100 companies, mostly in the United States and China, are behind 40% of the world’s private investment in research and development, highlighting a sharp concentration of power. Leading technology companies such as Apple, NVIDIA and Microsoft have amassed individual valuations of around US$3 trillion each - surpassing the entire GDP of the African continent.

Such monopolisation raises concerns as without shared access to digital infrastructure and innovation, many countries risk being left behind.

To counter this, the report highlights that without decisive policy responses, millions could be displaced, widening income gaps and destabilising already fragile economies.

UNCTAD Secretary-General Rebeca Grynspan underlined the importance of stronger international cooperation to shift the focus “from technology to people” and enable countries “to co-create a global artificial intelligence framework”.

With the report laying out a roadmap for countries to harness AI’s potential, Grynspan stated “we must put people - not just profits - at the centre of AI development.

“Only through inclusive governance and international cooperation can we shift from a tech-centric world to one rooted in shared human progress.”

On a more positive note, UNCTAD argues that AI is not just about replacing jobs - it can also create new industries and empower workers, noting that if governments invest in reskilling, upskilling and workforce adaptation, they can ensure AI enhances employment opportunities rather than eliminate them.

UNCTAD highlights three essential levers that every country must master to harness AI for national prosperity:

Infrastructure - Accessible cloud computing, robust internet access, and AI-specific hardware

Data - Transparent, secure, and ethically managed datasets that support innovation

Skills - A digitally literate workforce ready to lead and adapt

However, most nations are not prepared with fewer than one-third of developing countries have adopted any national AI strategy.

Image: Visualisation of Artificial Intelligence combining a human brain schematic with a circuit board. Public Domain.