A recent report from the United Nations Conference on Trade and Development (UNCTAD) suggests that artificial intelligence (AI) and its automated applications could soon affect 40 percent of the global workforce. The report anticipates that by 2033, AI could evolve into a multi-trillion-dollar sector. This growth may, however, be unevenly distributed, exacerbating existing economic inequalities. Additionally, the report warns that AI-driven automation might undermine developing countries’ competitiveness, which has been largely based on low-cost labor. To address these challenges, the report urges governments to adopt proactive labor policies.
UNCTAD Reports that AI Growth May Amplify Economic Inequalities
In its Technology and Innovation Report 2025, UNCTAD indicates that while AI serves as a significant catalyst for progress, its benefits are not universally accessible. The report estimates that the market value of AI could reach $4.8 trillion (approximately Rs. 404 lakh crore) by 2033, driven by its increasing popularity and transformative potential in the digital realm. However, access to AI tools and expertise appears to be limited to a select few economies.
UNCTAD’s findings reveal that just 100 firms, predominantly based in the United States and China, represent 40 percent of global corporate spending on AI research and development. Prominent companies in this space include Apple, Nvidia, Microsoft, and Baidu. The report cautions that if access to AI development remains concentrated, it could exacerbate technological disparities and deprive many developing nations of the advantages associated with these technologies.
Potential Impacts of AI on the Global Job Market
Photo Credit: UNCTAD
The workforce may face significant challenges as a consequence of AI advancements, with an estimated 40 percent of global jobs at risk of displacement due to automation, particularly in developing economies where low-cost labor has been a strategic advantage.
The report also highlights that 118 nations, many from the Global South, are excluded from key discussions surrounding AI governance. This lack of representation could mean that their specific needs and concerns are overlooked in the formulation of international AI policies. UNCTAD recommends that nations experiencing the rise of AI enhance international collaboration to establish a more inclusive global framework.
Moreover, UNCTAD advocates that countries in the developing world proactively enhance their labor policies to protect the workforce from adverse effects. It emphasizes the necessity of investing in reskilling, upskilling, and workforce adaptation to ensure that AI generates new job opportunities rather than displacing current ones.
The report lays out a strategy for fostering inclusive growth through AI. Proposed measures include developing an “AI equivalent public discourse mechanism” for accountability; creating shared global facilities to grant developing countries access to necessary infrastructure; prioritizing open-source models and datasets to democratize knowledge and resources; and implementing capacity-building initiatives to help developing nations overcome existing gaps.
UNCTAD Secretary-General Rebeca Grynspan called for enhanced global cooperation, urging stakeholders to “shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework.”
