The United Nations Conference on Trade and Development (“<span class="news-text_medium">UNCTAD</span>”) has released a report underscoring the dual-edged impact of AI on the global economy. On one hand, AI presents enormous economic promise, with projections estimating the global AI market will reach US$4.8 trillion by 2033, a value comparable to the size of Germany’s economy. The report emphasises AI’s potential to drive significant economic growth and innovation worldwide.
However, the UNCTAD report also identifies that nearly 40% of jobs globally could be disrupted by AI-driven automation. Unlike previous technological advances that primarily affected blue-collar workers, this AI wave is poised to impact white-collar and knowledge-based professions significantly. AI systems can now perform tasks such as writing, data analysis and customer service, traditionally performed by humans.
The report cautions that without proper safeguards, AI has the potential to exacerbate existing inequalities. Its benefits could become concentrated in certain countries and companies, disproportionately favouring capital owners over workers. UNCTAD’s chief stressed that technological progress alone does not guarantee equitable outcomes, highlighting the need for policies that ensure inclusive development and fair distribution of AI’s gains.
In response to these challenges, the UN advocates for a “people-centred” approach to AI development and stronger international cooperation on AI governance. The report is already sparking discussions within governments on how to retrain displaced workers, modernise labour laws and ensure that the economic benefits of AI are shared more broadly across society.
This UNCTAD report powerfully calls for responsible AI strategies that maximise AI’s benefits while safeguarding the future of the workforce and promoting equitable growth.
