Winners, Losers, and AI: UN Calls for Inclusive Governance Amid Tech Boom

Updated: April 14, 2025 10:56

Image Source: Indian Retailer

The United Nations Conference on Trade and Development (UNCTAD) has published its Technology and Innovation Report 2025, emphasizing the revolutionary potential of artificial intelligence (AI) and warning against its dangers of exacerbating global inequality. As the AI market is expected to grow to $4.8 trillion by 2033, the report emphasizes the need for inclusive governance, wise investments, and international cooperation to ensure AI benefits are enjoyed equitably by nations.

Economic Impact:

AI will redefine industries worldwide, with a potential to affect as much as 40% of all jobs globally.
Automation can benefit capital more than labor, diminishing the comparative advantage of low-cost labor in emerging economies.
The market for AI is anticipated to reach $4.8 trillion by 2033, roughly the size of the economy of Germany.

Global Inequality:

Fewer than one-third of developing nations have national AI strategies.
Approximately 118 countries, including most of the Global South, have no representation in international global AI governance debates.
Corporate control is bracing: only 100 firms, largely based in the U.S. and China, dominate 40% of corporate R&D investments worldwide in AI.

Prospects for Developing Economies:

Investments in digital infrastructure, data capabilities, and workforce reskilling are essential.
Open models and shared AI facilities can democratize access and drive innovation.
South-South cooperation would assist in meeting shared challenges and realizing shared opportunities.

Policy Recommendations:

Develop a worldwide framework for inclusive AI governance based on equity and openness.
Facilitate open innovation through joint infrastructure and public disclosure mechanisms similar to ESG frameworks.
Enhance international cooperation to make developing countries have a say in setting the agenda for AI policy.

Call to Action:

UNCTAD stresses moving the focus away from technology towards people by putting human beings at the center of AI development.
Strategic investments and inclusive policies are needed to avoid AI worsening current divides and ensure it propels sustainable development.
The report is a call to action for governments, companies, and international institutions to act decisively in creating an inclusive AI future.

Sources: UNCTAD Press Release on Technology and Innovation Report 2025, Forbes Analysis, CADE Project Summary

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