UN Warns: AI Could Impact 40% of Global Jobs and Widen Inequality

AI could affect 40% of jobs and widen inequality between nations, UN warns

However, the agency also raised concerns that AI could affect 40% of jobs worldwide and worsen inequality between nations. Artificial intelligence is projected to reach $4.8 trillion in market value by 2033, but the technology's benefits remain highly concentrated, according to the U.N. Trade and Development agency. UNCTAD said the AI market cap would roughly equate to the size of Germany's economy, with the technology offering productivity gains and becoming a prominent force in digital transformation, in a report released on Thursday. However, the agency also raised concerns about automation and job displacement, warning that AI could affect 40% of jobs worldwide. On top of that, AI is not inherently inclusive, meaning the economic gains from the tech remain "highly concentrated," the report added. "The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies," it said. The potential for AI to cause unemployment and inequality is a long-standing concern, with the IMF making similar warnings over a year ago. In January, The World Economic Forum released findings that as many as 41% of employers were planning on downsizing their staff in areas where AI could replicate them. However, the UNCTAD report also highlights inequalities between nations, with U.N. data showing that 40% of global corporate research and development spending in AI is concentrated among just 100 firms, mainly those in the U.S. and China. Furthermore, it notes that leading tech giants, such as Apple, Nvidia and Microsoft -- companies that stand to benefit from the AI boom -- have a market value that rivals the gross domestic product of the entire African continent. This AI dominance at national and corporate levels threatens to widen those technological divides, leaving many nations at risk of lagging behind, UNCTAD said. It noted that 118 countries -- mostly in the Global South -- are absent from major AI governance discussions.

AI could affect 40 per cent of global jobs, warns UN

Forty per cent of jobs globally could be impacted by the growth of artificial intelligence (AI) in the next decade, a new report from the United Nations said Artificial intelligence (AI) may impact 40 per cent of jobs worldwide, which could mean overall productivity growth but many could use their jobs, a new report from the United Nations Department of Trade and Development (UNCTAD) has found. Thereport, which was published on Monday, says that AI could impact jobs in four main ways: either by replacing or complementing human work, deepening automation, and possibly creating new jobs, such as in AI research or development. A handful of companies that control the world's advancement in AI "often favour capital over labour," the report continues, which means there is a risk that AI "reduces the competitive advantage" of low-cost labour from developing countries. Rebeca Grynspan, UCTAD's Secretary-General, said in a statement that there needs to be stronger international cooperation to shift the focus away "from technology to people". AI is supposed to lead to $4.8trillion (€4.38 trillion) in market value by 2033 but the beneficiaries are still highly concentrated, the report found. Just 100 companies, mostly based in the United States and China, account for almost half of the world's research and development spending in AI. Both countries also produce one-third of peer-reviewed articles and two-thirds of AI patents, which shows that they "dominate knowledge generation," in the field. The report notes that tech giants like Apple, NVIDIA and Microsoft, all of whom are based in the US, have a market value of $3 trillion (€2.73 trillion), which rivals the economy of the whole African continent. Amazon and Alphabet, Google's parent company, are worth at least $2 trillion (€1.82 trillion). "Market dominance, at both national and corporate levels, may widen technological divides, leaving many developing nations at risk of missing out on its benefits," the report found. The EU has launched antitrust investigations into many of the abovecompanies but in recent days have, in some cases, consideredrevising digital services taxes on their European operations. The study also evaluated how competitive countries are with other frontier technologies. It found the US has the edge in digital technologies like AI, the Internet, big data, blockchain, and 3D printing. China, on the other hand, leads development in 5G cellular networks, drones, and solar photovoltaics (PVs). Japan and Korea are also competitive in these areas, along with nanotechnologies, and robotics development. The UN found that 118 countries, mostly from the Global South, are missing from the conversations about how to govern AI. AI uses machine learning to identify patterns and relationships from huge amounts of data, with their performance improving over time. This means that these systems are not limited to routines and structured tasks like previous automation technologies, the report found. The result is that AI systems can in theory outperform older systems and possibly human performance, especially in highly skilled jobs. But, when combined with other systems, it can control physical production. The impact that AI is going to have on the labour force depends on how automation, augmentation, and new positions interact. The UNCTAD said developing countries need to invest in reliable internet connections, making high-quality data sets available to train AI systems and building education systems that give them necessary digital skills, the report added. To do this, UNCTAD recommends building a shared global facility that would share AI tools and computing power equitably between nations.

AI could impact 40 percent of jobs worldwide: UN

Geneva (AFP) - The global artificial intelligence market is projected to reach $4.8 trillion -- roughly the size of Germany's economy -- by 2033, the UN said Thursday, warning nearly half of jobs worldwide could be affected. While AI is transforming economies and creating vast opportunities, the technology also risks deepening existing inequalities, the UN trade and development agency UNCTAD warned in a report. In particular, the report cautioned that "AI could impact 40 percent of jobs worldwide, offering productivity gains but also raising concerns about automation and job displacement". While previous waves of technology mainly impacted blue-collar jobs, UNCTAD highlighted that knowledge-intensive sectors would be left most exposed by AI. This means advanced economies will surely be hardest-hit, it said, adding though that these economies were better positioned to harness the benefits of AI than developing economies. "The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies," UNCTAD said. In a statement, the agency chief Rebeca Grynspan underlined the importance of ensuring people are at the centre of AI development, urging stronger international cooperation to "shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework". "History has shown that while technological progress drives economic growth, it does not on its own ensure equitable income distribution or promote inclusive human development," she warned in the report. $4.8 trillion In 2023, so-called frontier technologies like the internet, blockchain, 5G, 3D printing and AI, represented a $2.5-trillion market, with that number expected to increase sixfold in the next decade to $16.4 trillion, the report said. And by 2033, AI will be the leading technology in this sector, with an expected value of $4.8 trillion, it showed. But UNCTAD cautioned that access to AI infrastructure and expertise remained concentrated in just a few economies, with only 100 firms, mainly in the US and China, currently accounting for 40 percent of global corporate research and development spending. "Countries should act now," the agency said, insisting that "by investing in digital infrastructure, building capabilities, and strengthening AI governance", they could "harness the AI potential for sustainable development". "AI is not just about replacing jobs," it said, insisting the technology could "also create new industries and empower workers". "Investing in reskilling, upskilling, and workforce adaptation is essential to ensure AI enhances employment opportunities rather than eliminating them." The UN agency stressed the need for all countries to take part in discussions around how to govern AI. "AI is shaping the world's economic future, yet 118 countries - mostly in the Global South - are absent from major AI governance discussions," it said. "As AI regulation and ethical frameworks take shape, developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few."

UN warns AI boom could worsen global inequality and displace 40% of jobs

AI could inject $4.8 trillion into the global market by 2033, but the UN warns that the benefits of this technology remain concentrated in a few hands, potentially affecting 40% of jobs worldwide and increasing inequality between nations. The U.N. Trade and Development agency (UNCTAD) released a report on Thursday projecting the AI market cap to equal roughly the size of Germany's economy, while also cautioning against automation, job displacement and concentrated economic gains. The report suggests that AI-driven automation favors capital over labor, potentially widening inequality and reducing the competitive advantage of low-cost labor in developing economies. The IMF issued similar warnings over a year ago, and the World Economic Forum released findings in January stating that 41% of employers plan to downsize staff in areas where AI can replicate their functions. UN data indicates that 40% of global corporate research and development spending in AI concentrates among 100 firms, primarily in the U.S. and China. Tech giants that stand to gain from the AI boom, like Apple, Nvidia, and Microsoft, possess a market value rivaling the GDP of the entire African continent. UNCTAD stated that this AI dominance at national and corporate levels could widen technological divides, leaving many nations behind, noting that 118 countries, mostly in the Global South, are absent from major AI governance discussions. The report suggests AI can also "create new industries and empower workers" with adequate investment in reskilling and upskilling. Developing nations must "have a seat at the table" regarding AI regulation and ethical frameworks, the report notes. UNCTAD's recommendations to the international community for driving inclusive growth include: The report concludes that strategic investments, inclusive governance, and international cooperation are crucial for ensuring AI benefits all and doesn't reinforce existing divides. Open-source code is made freely available on the web for possible modification and redistribution.

UN Warns That AI Growth Could Affect 4 in 10 Jobs Worldwide

The new report from UNCTAD suggests the vast scale of the AI market: it's predicted to reach $4.8 trillion by 2033 -- roughly the size of Germany's entire economy, CNBC reported. The problem with this is that a lot of that money will be "highly concentrated" in just a few regions simply because AI isn't "inherently inclusive." Nothing built into the tech is designed to boost equality, and considering the staggering amount of capital needed to pay for AI computing resources, on the scale of hundreds of billions of dollars, only certain nations can afford to play the game. The United States and China account for most AI development; 40 percent of global corporate research and development spending in AI is shared by just 100 different companies, mainly in the U.S. and China. The UN agency also raises worries about how AI will change automation and actually drive job displacement. The benefits of the changes brought by AI to automation "often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies," the report warns. That could impact some 40 percent of jobs around the globe. The upside of AI technology is that it can also create wholly new industries and "empower workers," the UN noted, which supports a line often touted by AI supporters: the notion that AI won't so much "steal" people's jobs as free them up to do more meaningful and more profitable work. This upside is conditional on there being the right kind of investments to boost staff reskilling and upskilling. These AI boons will also only benefit developing nations if they have a "seat at the table" for designing AI regulations and deciding on ethical frameworks, CNBC noted.

AI could impact 40% of jobs worldwide: UN

The global AI market is expected to be worth $4.8 trillion by 2033. This growth could affect 40 percent of jobs worldwide and widen existing inequalities, according to a UN report. Developing economies may be less able to benefit. The UN emphasizes investing in digital infrastructure, building capabilities, and involving all countries in AI governance.The global artificial intelligence market is projected to reach $4.8 trillion -- roughly the size of Germany's economy -- by 2033, the UN said Thursday, warning nearly half of jobs worldwide could be affected. While AI is transforming economies and creating vast opportunities, the technology also risks deepening existing inequalities, the UN trade and development agency UNCTAD warned in a report. In particular, the report cautioned that "AI could impact 40 percent of jobs worldwide, offering productivity gains but also raising concerns about automation and job displacement". While previous waves of technology mainly impacted blue-collar jobs, UNCTAD highlighted that knowledge-intensive sectors would be left most exposed by AI. This means advanced economies will surely be hardest-hit, it said, adding though that these economies were better positioned to harness the benefits of AI than developing economies. "The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies," UNCTAD said. In a statement, the agency chief Rebeca Grynspan underlined the importance of ensuring people are at the centre of AI development, urging stronger international cooperation to "shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework". "History has shown that while technological progress drives economic growth, it does not on its own ensure equitable income distribution or promote inclusive human development," she warned in the report. In 2023, so-called frontier technologies like the internet, blockchain, 5G, 3D printing and AI, represented a $2.5-trillion market, with that number expected to increase sixfold in the next decade to $16.4 trillion, the report said. And by 2033, AI will be the leading technology in this sector, with an expected value of $4.8 trillion, it showed. But UNCTAD cautioned that access to AI infrastructure and expertise remained concentrated in just a few economies, with only 100 firms, mainly in the US and China, currently accounting for 40 percent of global corporate research and development spending. "Countries should act now," the agency said, insisting that "by investing in digital infrastructure, building capabilities, and strengthening AI governance", they could "harness the AI potential for sustainable development". "AI is not just about replacing jobs," it said, insisting the technology could "also create new industries and empower workers". "Investing in reskilling, upskilling, and workforce adaptation is essential to ensure AI enhances employment opportunities rather than eliminating them." The UN agency stressed the need for all countries to take part in discussions around how to govern AI. "AI is shaping the world's economic future, yet 118 countries - mostly in the Global South - are absent from major AI governance discussions," it said. "As AI regulation and ethical frameworks take shape, developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few."

AI's $4.8 Trillion Future: UN Warns Of Widening Digital Divide Without Urgent Ac...

The Technology and Innovation Report 2025, released on Thursday by the UN Conference on Trade and Development (UNCTAD), sounds the alarm on growing inequality in the AI landscape and lays out a roadmap for countries to harness AI's potential. The report shows that just 100 companies, mostly in the United States and China, are behind 40 per cent of the world's private investment in research and development, highlighting a sharp concentration of power. At the same time, 118 countries - mostly from the Global South - are missing from global AI governance discussions altogether. 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". The report estimates that up to 40 percent of global jobs could be affected by AI. While the technology brings new opportunities, especially through productivity gains and new industries, it also raises serious concerns about automation and job displacement - especially in economies where low-cost labour has been a competitive advantage. But it's not all bad news. UNCTAD's experts argue that AI is not just about replacing jobs - it can also create new industries and empower workers. If governments invest in reskilling, upskilling and workforce adaptation, they can ensure AI enhances employment opportunities rather than eliminate them. To avoid being left behind, developing countries need to strengthen what UNCTAD calls the "three key leverage points": infrastructure, data and skills. That means investing in fast, reliable internet connections and the computing power needed to store and process vast amounts of information. It also means ensuring access to diverse, high-quality datasets to train AI systems in ways that are effective and fair. And crucially, it requires building education systems that equip people with the digital and problem-solving skills needed to thrive in an AI-driven world. Beyond national policies, UNCTAD calls for stronger international collaboration to guide the development of artificial intelligence. The report proposes establishing a shared global facility to give all countries equitable access to computing power and AI tools. It also recommends creating a public disclosure framework for AI, similar to existing environmental, social and governance (ESG) standards, to boost transparency and accountability. "History has shown that while technological progress drives economic growth, it does not on its own ensure equitable income distribution or promote inclusive human development," noted Ms. Grynspan, calling for people to be at the centre of the AI revolution.