UN warns wide digital divide with no urgent action as AI projects $4.8 trillion market

By Anjali Sharma

UNITED NATIONS -, UN Conference on Trade and Development on Thursday released a new Technology and Innovation Report 2025 which warned that Artificial Intelligence is on the path to become a $4.8 trillion global market by 2033 the size of Germany’s economy but unless urgent action is taken, its benefits may remain in the hands of a privileged few.

The Technology and Innovation Report 2025 voiced the alarm on growing inequality in the AI landscape and lays out a roadmap for countries to harness AI’s potential.

The report showed 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.

It noted that 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 estimated that up to 40 percent of global jobs could be affected by AI. 

The technology brings new opportunities 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.

UNCTAD’s experts argued that AI is not just about replacing jobs it can also create new industries and empower workers.

If governments invest in re-skilling, up-skilling and workforce adaptation, they can ensure AI enhances employment opportunities rather than eliminate them, UNCTAD said.

It stressed that 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.

It requires building education systems that equip people with the digital and problem-solving skills needed to thrive in an AI-driven world.

The report acknowledged that beyond national policies, UNCTAD called for stronger international collaboration to guide the development of artificial intelligence.

The report proposed 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 standards, to boost transparency and accountability. 

Ms. Grynspan noted “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 called for people to be at the centre of the AI revolution.