UN Warns AI Could Impact 40% of Jobs, Increase Global Inequality
The U.N. Trade and Development agency (UNCTAD) has released a report projecting that artificial intelligence (AI) could reach a market value of $4.8 trillion by 2033, roughly equivalent to Germany’s economy, CNBC reported. However, the report raises alarms about the potential impact of AI on employment and global inequality.
According to UNCTAD, while AI promises productivity enhancements and drives digital transformation, it could affect 40% of jobs worldwide due to automation. The report emphasizes that the economic benefits of AI are not evenly distributed, often favoring capital over labor, which may exacerbate inequality and diminish the competitive edge of low-cost labor in developing countries.
The concerns regarding AI’s role in unemployment and inequality echo previous warnings from the International Monetary Fund (IMF) and findings from the World Economic Forum, which indicated that 41% of employers plan to downsize staff in roles susceptible to AI.
The report also highlights significant disparities between nations, noting that 40% of global corporate investment in AI research and development is concentrated among just 100 firms, primarily in the U.S. and China. Leading tech companies like Apple, Nvidia, and Microsoft have market values comparable to the entire GDP of Africa, raising concerns about widening technological divides.
To avoid falling behind, developing nations need to be included in AI governance discussions, as 118 countries, mostly in the Global South, are currently excluded.
While the report acknowledges the potential for AI to create new industries and empower workers, it stresses the importance of investing in reskilling and upskilling. UNCTAD recommends several actions for the international community to promote inclusive growth, including establishing an AI public disclosure mechanism, sharing AI infrastructure, utilizing open-source AI models, and fostering initiatives to disseminate AI knowledge and resources.
