The United Nations has forecasted that the global artificial intelligence (AI) market will soar to $4.8 trillion by 2033, a figure equivalent to the size of Germany’s economy. The UN also warned that AI could impact 40% of jobs worldwide.
While AI is unlocking significant economic potential, the UN’s trade and development agency, UNCTAD, raised concerns that the technology could deepen existing inequalities. The report highlights that AI’s influence will extend beyond blue-collar jobs, with knowledge-intensive sectors being especially vulnerable, particularly in advanced economies. However, these economies are better equipped to capitalize on AI than their developing counterparts.
UNCTAD explained that AI-driven automation tends to favor capital over labor, which could widen inequality and diminish the competitive edge of low-cost labor in developing nations.
Rebeca Grynspan, head of UNCTAD, stressed the importance of putting people at the heart of AI development. She called for increased international collaboration to create a global AI framework focused on human welfare rather than just technology. Grynspan cautioned that while technological advancement can spur economic growth, it does not automatically ensure fair income distribution or inclusive human development.
In 2023, frontier technologies—including AI, blockchain, 5G, and 3D printing—accounted for a $2.5 trillion market. This is expected to grow to $16.4 trillion by 2033, with AI becoming the leading technology in this sector.
However, UNCTAD pointed out that access to AI infrastructure and expertise is heavily concentrated in a few countries, with only 100 firms, mostly from the US and China, responsible for 40% of global corporate R&D spending. The agency urged nations to invest in digital infrastructure, enhance capabilities, and strengthen AI governance to fully harness AI’s potential for sustainable development.
The report emphasized that AI is not just about job displacement; it also offers the opportunity to create new industries and empower workers. To maximize AI’s benefits, investment in reskilling, upskilling, and workforce adaptation is critical.
Furthermore, UNCTAD highlighted the need for inclusive AI governance, urging that all countries, especially those in the Global South, should participate in discussions on AI regulation and ethical frameworks. As AI’s global impact grows, it is crucial that developing nations have a voice in shaping policies to ensure AI benefits the world as a whole, not just a select few.
