AI Could Impact 40 Percent of Jobs Worldwide: UN
AFP/APP
Geneva: The global artificial intelligence (AI) market is projected to soar to $4.8 trillion by 2033—equivalent to the size of Germany’s economy—raising significant concerns about job displacement, according to a new report by the United Nations Conference on Trade and Development (UNCTAD).
While AI continues to revolutionize economies and unlock vast opportunities, the technology could also exacerbate existing global inequalities. UNCTAD warns that nearly 40 percent of jobs worldwide may be affected, offering productivity gains on one hand but posing serious risks of automation and job loss on the other.
Unlike previous waves of technological change that primarily disrupted blue-collar work, this AI revolution targets knowledge-intensive sectors—leaving advanced economies more exposed. However, these nations are also better equipped to reap the benefits of AI, thanks to stronger infrastructure and investment capacity.
“The benefits of AI-driven automation often favour capital over labour,” UNCTAD stated, warning that this could widen inequality and erode the competitive advantage of low-cost labour in developing countries.
In a statement, UNCTAD Secretary-General Rebeca Grynspan emphasized the need to place people at the heart of AI development. She called for stronger international cooperation to “shift the focus from technology to people,” and urged countries to co-create a global AI governance framework.
“History has shown that while technological progress drives economic growth, it does not by itself ensure equitable income distribution or inclusive human development,” Grynspan cautioned.
AI Market Growth and Global Disparities
In 2023, frontier technologies—including AI, blockchain, 5G, the internet, and 3D printing—accounted for a $2.5 trillion market. This figure is expected to rise sixfold to $16.4 trillion by 2033, with AI alone projected to lead the sector, valued at $4.8 trillion.
Despite this massive growth, access to AI infrastructure and expertise remains heavily concentrated. Currently, just 100 companies—mostly based in the United States and China—account for 40 percent of global corporate R&D spending.
UNCTAD warned that this concentration of power could leave much of the world behind. “Countries should act now,” the agency urged, advocating for investments in digital infrastructure, skills development, and robust AI governance to unlock AI’s potential for sustainable development.
An Urgent Call for Inclusion and Preparedness
“AI is not just about replacing jobs,” the report added. “It also holds the potential to create new industries and empower workers.”
To make this a reality, UNCTAD stressed the importance of reskilling, upskilling, and workforce adaptation to ensure that AI enhances rather than threatens employment.
Crucially, the agency called for inclusive participation in global AI governance. “AI is shaping the world’s economic future, yet 118 countries—mostly from the Global South—remain absent from key AI policy discussions,” the report noted.
“As AI regulations and ethical frameworks take shape, developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few.”
