An artificial intelligence robot looking at the digital data display of the future.
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According to the UN Trade and Development Organization, artificial intelligence is projected to reach a market value of $4.8 trillion by 2033, but the profits of the technology are highly concentrated.
in Report UNCTAD said it was released on Thursday. The AI’s market capitalization is roughly comparable to the size of the German economy, saying that technology will provide increased productivity and encourage digital transformation.
However, agents have also raised concerns about automation and job mobility, warning that AI could affect 40% of jobs around the world. Plus, AI is not inherently comprehensive. This means that the economic benefits from the technology remain “highly concentrated,” the report added.
“The advantages of AI-driven automation often support capital over labor, which could increase inequality and reduce the competitive advantage of low-cost labor in developing countries.”
The possibility that AI could cause unemployment and inequality has been a long-standing concern, and the IMF issued a similar warning more than a year ago. The World Economic Forum was released in January Survey results 41% of employers planned downsizing their staff in areas where AI could replicate.
However, the UNCTAD report highlights inequality between nations, with UN data showing that 40% of AI’s global corporate research and development spending concentrated primarily on just 100 companies in the US and Chinese.
Furthermore, such major high-tech giants are apple, nvidia and Microsoft – Companies that support the benefit of the AI boom have market value comparable to gross domestic product across the African continent.
This AI domination at the national and corporate level could widen these technological divisions, putting many countries at risk of falling behind, Unctad said. 118 countries, primarily in the global South, noted that they lacked major AI governance debates.
United Nations Recommendations
However, AI is not just about job exchanges, the report said it can also “create new industries and empower workers.”
However, he said that in order to ensure that developing countries do not fall behind, they need to “sit at the table” when it comes to AI regulation and ethical frameworks.
In its report, UNCTAD makes many recommendations to the international community to promote comprehensive growth. These include AI public disclosure mechanisms, shared AI infrastructure, use of open source AI models, and initiatives to share AI knowledge and resources.
Open source generally refers to software in which the source code is freely available on the web, and may be modified and redistributed.
“AI can be a catalyst for progress, innovation and shared prosperity, but only if the country actively shapes its trajectory,” the report concludes.
“Strategic investment, comprehensive governance and international cooperation are key to ensuring that AI benefits everything, rather than strengthening existing divisions.”
