AI-Driven Automation Could Threaten 40 Percent of Jobs Globally, UN Experts Claim

Artificial intelligence (AI) and automation driven by AI technology could soon impact 40 percent of the global workforce, according to a new report by the United Nations Conference on Trade and Development (UNCTAD). The report highlights that by 2033, AI could become a multi-trillion-dollar market. However, the economic growth could be highly concentrated, leading to wider inequalities. The report also mentioned that AI-led automation could disrupt the developing countries' advantage of low-cost labour. As a solution, it recommends that governments implement proactive labour policies.

UNCTAD Says Rise of AI Could Widen Economic Inequalities

In its Technology and Innovation Report 2025, UNCTAD highlights that while AI is an important tool for progress, it is not necessarily inclusive in nature. The report projects that AI's market value could reach $4.8 trillion (roughly Rs. 404 lakh crore) by 2033, due to its rising popularity and potential for digital transformation. However, it is said that access to AI infrastructure and expertise is only concentrated in a few economies.

The report claims that just 100 companies, mainly located in the US and China, account for 40 percent of the global corporate research and development spending in AI. Notable names in the list include Apple, Nvidia, Microsoft, and Baidu. If the trend of concentration of access to AI development continues, the UN report says it could widen technological divides and lead to many developing nations missing out on its benefits.

How global job market could be affected by AI
Photo Credit: UNCTAD

One of the biggest downsides of the rise of AI could be felt in the workforce, where 40 percent of global jobs could be displaced due to AI-driven automation, the report underlines. The impact is expected to be felt more in developing economies, which can lose the competitive advantage of low-cost labour.

The report also highlights that 118 countries, most of which belong to the global south, are not included in major AI governance discussions. These countries not having a seat at the table could lead to their best interests not being represented as global AI policies are developed and agreed upon. The UNCTAD recommends that countries that are witnessing the rise of AI should foster stronger international cooperation to create an inclusive global AI framework.

UNCTAD also suggests that developing nations proactively work on improving labour policies to safeguard the workforce from a negative impact. It also highlights investment in reskilling, upskilling, and workforce adaptation to ensure AI creates new employment opportunities instead of eliminating the existing ones.

The report also provides a roadmap to enable inclusive growth with AI. The measures include developing an “AI equivalent public discourse mechanism” to improve accountability; creation of globally shared facilities to provide developing economies access to the infrastructure; a focus on open-source models and datasets to democratise knowledge and resources; and capacity-building strategies among developing nations to overcome the lack of opportunities.

UNCTAD Secretary-General Rebeca Grynspan called for stronger international cooperation to “shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework”.