The United Nations Trade and Development agency has expressed concerns over automation and job displacement that could arise from Artificial intelligence.
The agency projects that AI will reach a market value of $4.8 trillion by 2033, though its benefits are expected to remain concentrated in certain areas.
In a report released on Thursday, UNCTAD noted that this AI market cap would be roughly equivalent to the size of Germany’s economy, highlighting the technology’s potential to boost productivity and drive digital transformation.
However, UNCTAD warned that AI could impact 40% of jobs globally.
“AI could impact 40% of jobs worldwide, offering productivity gains but also raising concerns about automation and job displacement,” the agency stated.
Additionally, the report noted that AI is not inherently inclusive, meaning the economic gains from the technology being “highly concentrated.”
“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” it said.
The potential of AI to drive unemployment and inequality has been a long-standing concern, with the IMF issuing similar warnings over a year ago. In January, the World Economic Forum revealed that up to 41% of employers planned to reduce staff in areas where AI could take over their roles.
The UNCTAD report also underscores global inequalities, revealing that 40% of worldwide corporate AI research and development spending is concentrated in just 100 firms, predominantly based in the U.S. and China, according to U.N. data.
The report also points out that major tech giants like Apple, Nvidia, and Microsoft — companies poised to benefit from the AI boom — have market values comparable to the entire GDP of the African continent.
UNCTAD warned that this dominance of AI at both national and corporate levels could exacerbate technological divides, putting many nations at risk of falling further behind.
It noted that 118 countries — mostly in the Global South — are absent from major AI governance discussions.
The report however emphasized that AI isn’t just about job replacement; it can also “create new industries and empower workers,” as long as there is sufficient investment in reskilling and upskilling.
