As artificial intelligence accelerates toward a projected $4.8 trillion impact, a new UN report warns that the global AI boom could exacerbate inequality unless urgent action is taken to close the digital divide.
The Technology and Innovation Report 2025, released by the UN Conference on Trade and Development (UNCTAD), highlights the risks of global exclusion and concentrated power in AI development. It urges nations to work together on shared governance and access strategies to ensure AI benefits are equitably distributed.
AI Power Concentrated in Few Hands
According to the report, 100 companies – primarily in the United States and China – account for 40% of global private investment in AI-related research and development. In stark contrast, 118 countries, mostly from the Global South, remain absent from the global AI governance table.
UNCTAD Secretary-General Rebeca Grynspan stressed the urgency of rebalancing power, calling for global cooperation to “shift the focus from technology to people.”
Disruption and Opportunity in the Job Market
The report estimates that AI could affect up to 40% of global jobs. While automation poses risks of displacement, especially in labour-intensive economies, AI also presents an opportunity to create new industries and improve productivity.
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UNCTAD underscores that with the right investment in education, upskilling, and digital infrastructure, AI can enhance employment prospects rather than undermine them.
The Three Leverage Points: Infrastructure, Data, and Skills
To compete in the AI-driven economy, developing nations must build capacity across three key areas: infrastructure, data, and skills.
This includes expanding fast, reliable internet, securing high-performance computing capabilities, and enabling access to diverse, high-quality datasets. Equally important is transforming education systems to equip workers with digital literacy and problem-solving competencies.
A Call for Global AI Cooperation
UNCTAD’s report pushes for a new global framework that supports inclusive AI development. It recommends a shared global facility to democratise access to computing power and AI tools, particularly for under-resourced countries.
In addition, a public disclosure framework akin to ESG (environmental, social, and governance) standards is proposed to boost transparency and accountability in AI systems.
“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,” said Ms. Grynspan. “People must be at the centre of the AI revolution.”
