In a sobering new forecast, the United Nations has sounded the alarm on one of the most profound transformations of the 21st century—artificial intelligence (AI). While often hailed as the engine of the future, AI is now being framed as a double-edged sword: a force that could simultaneously unlock productivity and deepen the tensions of global inequality.
AI is projected to become a $4.8 trillion global industry by 2033—nearly the size of Germany’s economy. But a new UNCTAD report warns that its benefits are unevenly shared. As AI races ahead, it risks deepening inequality within and between nations, threatening jobs, creative rights, and reinforcing control by a few wealthy countries and tech giants.
According to a recent analysis by the International Monetary Fund (IMF), AI could impact as much as 40% of jobs globally, with developed countries—those already riding the crest of digital transformation—bearing the greatest exposure. In advanced economies, the exposure jumps to a staggering 60%, as AI systems grow more capable of replacing high-skill cognitive work, not just manual labor.
“AI will transform the way we work. But that transformation may not be equitable,” said Kristalina Georgieva, Managing Director of the IMF. “We are entering an era where intelligence itself—both human and machine—will shape the distribution of economic power.”
A Tale of Two Futures
Not all AI-related job disruptions will result in mass unemployment. The IMF emphasizes that AI could be a “complementary force” in about half of exposed roles. Think of AI-powered tools enhancing healthcare diagnostics, automating tedious accounting tasks, or helping architects model smarter cities—roles where humans and machines could co-create the future.
But in the other half, especially in repetitive office work and some creative sectors, AI could act as a replacement rather than a helper. That could mean reduced demand for human labor, downward pressure on wages, and in some cases, complete job displacement. These shifts might occur gradually, but in industries heavily reliant on predictable tasks—customer service, data entry, legal review—the change could come quickly.
Developing Nations: The Inequality Dilemma
The United Nations Conference on Trade and Development (UNCTAD) issued a parallel warning: AI is not being adopted evenly, and this disparity may widen the development gap between rich and poor nations. In low-income countries where the workforce has long relied on labor cost advantages, AI could reduce demand for human outsourcing—cutting off a critical economic lifeline.
“The big worry is that countries not ready for this wave will be left further behind,” said Shamika Sirimanne, Director of Technology and Logistics at UNCTAD. “And it’s not just about infrastructure, it’s also about governance, ethics, and human capital.”
Without global cooperation or investment in digital capacity-building, there’s a risk that AI’s wealth creation will remain siloed within tech giants and a few innovation hubs, leaving developing countries to compete for fewer, lower-value jobs in a shrinking global labor pool.
Gender and AI: Hidden Vulnerabilities
The conversation around AI’s labor effects is also raising gender equity concerns. At the Global Summit on AI in Africa, a study showed that women working in outsourcing and service roles are at greater risk of automation. These roles, often repetitive and rule-based, are among the first to be targeted by AI.
The report warns that automation may replace women’s jobs 10% more frequently than men’s in the same sectors, especially in regions with limited access to retraining programs or digital literacy initiatives. If left unchecked, this could set back decades of progress on workplace gender equality.
What Can Be Done?
The good news? We are not powerless.
Economists and UN officials agree that policy choices made now will determine whether AI becomes a tool for inclusion or a driver of division. Recommendations include:
- Reskilling Programs: Governments and employers must invest heavily in education, digital literacy, and technical training to help workers adapt.
- AI Governance: Nations need to implement transparent, ethical frameworks for AI deployment to ensure fair access and accountability.
Global Collaboration: Without international cooperation, developing nations risk being left out of AI’s economic benefits altogether.
A Pivotal Moment
AI is not just a tool—it is a turning point. It has the potential to shape how wealth, opportunity, and dignity are distributed in the digital age. As the UN puts it, the world stands at a “critical juncture”. If embraced with foresight and fairness, AI could enhance human potential across the globe. But if ignored or mishandled, it could become the most powerful amplifier of inequality the modern world has seen.
The race is not just technological. It is moral, economic, and deeply human.
