AI’s Double-Edged Sword: UNDP Warns Policy Gaps Could Turn Innovation into Inequality

Updated: December 03, 2025 03:46

UNDP

A new UNDP report cautions that artificial intelligence, while transformative, could widen global inequality if policy gaps persist. Without inclusive frameworks, AI risks creating a “great divergence” between rich and poor nations, reversing decades of progress in health, education, and income. The report urges urgent global cooperation and regulation.

Artificial Intelligence (AI) is often hailed as the engine of future growth, but the United Nations Development Programme (UNDP) has sounded a stark warning: unmanaged AI adoption could deepen divides between nations. In its report, The Next Great Divergence: Why AI May Widen Inequality Between Countries, UNDP highlights that while AI offers immense opportunities, countries are starting this transition from vastly unequal positions.

Chief Economist Philip Schellekens noted that after decades of convergence in development indicators, AI risks ushering in a new era of “rising inequality”. Wealthier nations with advanced digital ecosystems are poised to capture disproportionate benefits, while poorer countries lacking infrastructure, skills, and governance frameworks may be left behind.

Major Takeaways

Risk of Divergence: AI could reverse 50 years of progress in narrowing global development gaps.

Unequal Starting Points: Developed nations enjoy strong digital ecosystems; developing nations face connectivity and skill deficits.

Policy Gaps: Lack of regulation and inclusive frameworks may exacerbate inequality.

Sectoral Impact: AI could reshape economies, governance, and education, but uneven access risks exclusion.

Call to Action: UNDP urges deliberate policy choices to ensure AI benefits are shared globally.

Notable Updates

The report emphasizes that trade, technology, and development previously helped close global gaps, but AI may undo these gains.

India is highlighted as a country well-positioned to tackle digital inequality, thanks to its digital public infrastructure and expanding AI research ecosystem.

UNDP stresses the need for international cooperation, inclusive governance, and investment in digital skills to prevent a new era of divergence.

Conclusion: AI’s promise is undeniable, but without inclusive policies and global collaboration, it risks becoming a driver of inequality rather than opportunity. The UNDP’s warning is clear: nations must act now to ensure that the age of AI strengthens, rather than fractures, the global development landscape.

Sources: The Star, Morung Express, Straits Times, UNDP Official Release

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