Kathmandu. The United Nations has warned that nearly half of the world’s jobs could be affected, with the global market for artificial intelligence (AI) estimated to reach the size of Germany’s economy, or $4.8 trillion, by 2033.
While AI is transforming economies and creating vast opportunities, the technology also risks deepening existing inequalities, the United Nations Trade and Development Agency (UNCTAD) has warned in a report.
In particular, the report warns that AI could impact 40 percent of jobs worldwide, providing productivity gains but also raising concerns about automation and job displacement. While previous technology waves have mainly impacted ‘manual’ jobs, UNCTAD has highlighted that knowledge-intensive sectors will be most affected by AI.
This means that advanced economies will certainly be the most affected. But these economies are better positioned to benefit from AI than developing economies, UNCTAD said. “The benefits of AI-driven automation often favor capital over labor, which can widen inequalities and erode the competitive advantage of low-cost labor in developing economies,” UNCTAD said.
The agency’s chief, Rebecca Greenspan, stressed in a statement the importance of ensuring that people are at the center of AI development, calling for stronger international cooperation to “shift the focus from technology to people, enabling countries to co-create a global AI framework.” “History has shown that while technological progress can boost economic growth, it does not in itself promote equitable income distribution or inclusive human development,” he warned in the report.
According to the report, so-called frontier technologies such as the internet, blockchain, 5G, 3D printing and AI represented a $2.5 trillion market in 2023. This figure is expected to increase sixfold over the next decade to $16.4 trillion. Also, by 2033, AI will be the leading technology in this area, with an estimated value of $4.8 trillion. But UNCTAD warned that access to AI infrastructure and expertise is concentrated in just a few economies, with just 100 companies, mainly in the US and China, currently accounting for 40 percent of global corporate research and development spending.
“Countries must act now,” the agency said, emphasizing that they can harness AI’s potential for sustainable development by investing in digital infrastructure, building capabilities and strengthening AI governance. “AI is not just about replacing jobs,” UNCTAD said, stressing that the technology can “create new industries and empower workers.” “Investing in reskilling, upskilling and workforce adaptation is essential to ensure that AI increases job opportunities.”
UNCTAD stressed the need for all countries to participate in discussions on how to govern AI. “AI is shaping the world’s economic future, yet 118 countries – mostly in the Global South – are absent from key AI governance discussions,” the agency said. “As AI regulation and ethical frameworks take shape, developing countries must be at the table to ensure that AI is not just for the benefit of a few but for global progress.”
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