AI's Double-Edged Sword: A Warning for Global Inequality
In a recent eye-opening report, the United Nations Development Programme (UNDP) has raised concerns about the potential impact of artificial intelligence (AI) on global inequality. The report, titled "The Next Great Divergence: Why AI May Widen Inequality Between Countries," paints a picture of a world where AI could either revolutionize development or exacerbate existing divides.
But here's where it gets controversial: the report suggests that without careful management, AI could reverse the progress made over the last half-century, where lower-income countries gradually caught up with their higher-income counterparts. This "era of convergence" brought about significant improvements in health, education, and income. However, the starting points for countries adopting AI are vastly different, and this is where the risk lies.
The Asia and Pacific region, with its diverse landscape of countries, is at the forefront of this AI transition. While some nations, like China and Singapore, are rapidly expanding their AI innovation footprint, others are still working on strengthening their digital foundations. This disparity highlights the potential for AI to widen the gap between countries, especially when it comes to economic performance, people's capabilities, and governance systems.
AI has the potential to boost annual GDP growth in the region by around 2% and increase productivity in sectors like health and finance by up to 5%. ASEAN economies alone could see nearly $1 trillion in additional GDP over the next decade. But this growth comes with a catch - millions of jobs, particularly those held by women and young people, are at risk of automation if ethical and inclusive AI governance principles are not prioritized.
"AI is moving at lightning speed, yet many countries are still playing catch-up," said Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific. "The Asia-Pacific experience shows us how quickly the gap can widen between those shaping AI and those being shaped by it."
And this is the part most people miss: the report emphasizes that digital readiness varies significantly across the region. While some countries are investing heavily in AI infrastructure and skills, others are still focused on basic digital access and literacy. This digital divide could further exacerbate inequality, as limited infrastructure, skills, computing power, and governance capacity constrain the potential benefits of AI while amplifying risks such as job displacement and data exclusion.
Women and young people are particularly vulnerable. Jobs held by women are nearly twice as exposed to automation, and youth employment is already declining in high-AI-exposure roles, especially for those aged 22-25. In South Asia, women are up to 40% less likely than men to own a smartphone, and rural and indigenous communities often remain underrepresented in the datasets used to train AI systems, increasing the risk of algorithmic bias and exclusion from essential services.
Despite these challenges, AI is transforming governance and public services across the region. Examples like Bangkok's Traffy Fondue platform, which has processed nearly 600,000 citizen reports, and Singapore's Moments of Life service, which reduced paperwork for new parents, showcase the potential of AI to enhance public administration and service delivery. However, only a limited number of countries have comprehensive AI regulations, and the need for robust governance frameworks is more critical than ever.
"The key fault line in the AI era is capability," said Philip Schellekens, UNDP Chief Economist for Asia and the Pacific. "Countries that invest in skills, computing power, and sound governance systems will thrive, while others risk being left in the dust."
This report serves as a wake-up call, urging countries to take deliberate and inclusive policy actions to ensure that AI benefits all, rather than becoming a tool for further inequality. It's a call to action to turn the risk of AI into a path for shared progress and a more equitable future.
MEDIA CONTACTS
In Bangkok: Aminath Mihdha – Partnerships and Communications Specialist – aminath.mihdha@undp.org
In New York: Raul de Mora Jimenez – Communications Specialist – raul.de.mora@undp.org
