According to a recent report released by the United Nations Conference on Trade and Development (UNCTAD), artificial intelligence (AI) and its associated automation technologies are projected to impact 40 percent of the global workforce. The document anticipates that by 2033, the AI market could reach a staggering multi-trillion-dollar valuation. While tipping points for economic growth appear promising, the report warns that this growth may exacerbate existing inequalities. Further, the findings indicate that AI-driven automation could undermine the traditional competitive edge held by developing nations due to their low-cost labor.
UNCTAD Report Highlights Potential Economic Inequality from AI Expansion
In the Technology and Innovation Report 2025, UNCTAD emphasizes that while AI is a powerful instrument for advancement, it lacks inclusivity. The report estimates that the value of the AI market could soar to approximately $4.8 trillion (about Rs. 404 lakh crore) by 2033, driven largely by its growing appeal and potential to transform digital processes. However, it points out that the infrastructure and expertise surrounding AI are predominantly found within a limited number of economies.
The analysis reveals that just a hundred companies, mainly from the United States and China, account for 40 percent of the world’s corporate research and development investment in AI. Prominent firms in this sector include Apple, Nvidia, Microsoft, and Baidu. Should this trend of concentrated access to AI development persist, UNCTAD warns that it could widen the technological gap and prevent numerous developing countries from reaping the benefits of AI advancements.
Impact of AI on the Global Job Market
Photo Credit: UNCTAD
The ramifications of AI on employment could be significant, with the potential for 40 percent of global jobs to be automated. This is particularly concerning for developing economies, which may lose their competitive advantage in low-cost labor dynamics.
The report points out that 118 countries, primarily from the global south, are largely absent from critical discussions about AI governance. Their exclusion raises concerns about the representation of their interests as international policies around AI are formulated. UNCTAD advocates for these nations to pursue stronger international alliances to build an inclusive and equitable global AI framework.
Moreover, the report urges developing countries to take proactive steps in enhancing labor policies to protect their workforces from adverse effects. Investment in reskilling and upskilling is highlighted as crucial for ensuring that AI serves to generate new job opportunities rather than merely displacing existing positions.
UNCTAD also offers a strategic roadmap aimed at fostering inclusive growth through AI. Proposed initiatives include establishing an “AI equivalent public discourse mechanism” for improving accountability; creating globally accessible facilities to aid developing economies in obtaining the necessary infrastructure; promoting open-source models and datasets to democratize knowledge; and implementing capacity-building strategies to provide greater opportunities within these nations.
UNCTAD Secretary-General Rebeca Grynspan reiterated the need for enhanced international collaboration to “shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework.”
