AI Could Impact 40% Of Jobs Worldwide, UN Warns

The United Nations Conference on Trade and Development (UNCTAD) has issued a stark warning about the dual-edged nature of artificial intelligence (AI). While AI promises to revolutionise economies by introducing significant efficiencies, it also poses a threat by potentially exacerbating existing global inequalities.

AI's impact could be particularly profound on employment, with the report estimating that up to 40% of jobs globally might be affected. This shift is expected to transcend traditional blue-collar roles, extending into sectors that rely heavily on knowledge-based work.

The unsettling aspect of this transition is that while some jobs may be displaced, new opportunities could arise, albeit with a different skill set requirement. This phenomenon underscores the need for strategic reskilling and upskilling initiatives to bridge the emerging skills gap and ensure that the workforce can adapt to the changing employment landscape.

By 2033, AI is anticipated to become the dominant technology within the "frontier technologies" market, which also includes advancements like the internet, blockchain, and 5G. This sector is currently valued at $2.5 trillion, with projections suggesting a growth to $16.4 trillion in the next decade.

Within this booming market, AI alone is expected to account for $4.8 trillion. However, this rapid expansion brings to light concerns about equitable access to AI technologies. Currently, a handful of firms primarily based in the US and China dominate AI research and development, controlling 40% of global corporate investment in this area.

UNCTAD's report emphasizes the crucial need for developing economies to actively participate in AI's development and governance. It points out that a significant number of countries, particularly those in the Global South, are not involved in crucial discussions surrounding AI regulation and ethics. To ensure AI benefits are globally distributed and support sustainable development, it's imperative that these nations have a voice in shaping the frameworks that will govern AI's future use.

Among the report's recommendations, investing in digital infrastructure, enhancing workforce skills, and establishing robust AI governance emerge as key strategies. These steps are essential for countries to leverage AI's potential responsibly and inclusively. The focus on reskilling and upskilling is particularly notable, with UNCTAD arguing that such investments are vital to transform AI from a job disruptor into a catalyst for creating new industries and empowering workers.

UNCTAD Secretary-General Rebeca Grynspan has highlighted the importance of centering human development in AI's advancement. She states, "History has shown that while technological progress drives economic growth, it does not on its own ensure equitable income distribution or promote inclusive human development." This remark encapsulates the challenge of ensuring that AI's benefits are broadly shared, rather than concentrated among a few economies or sectors.

The report also cautions against the inclination of AI-driven automation to favor capital over labor, a trend that could intensify global inequality. Advanced economies, despite being most vulnerable to AI's disruptive impact on employment, are positioned to benefit significantly from these advancements. In contrast, developing nations risk losing their competitive edge due to reliance on low-cost labour, unless measures are taken to adapt and thrive in the new technological paradigm.

UNCTAD's report serves as a call to action for global cooperation and strategic planning to ensure AI's immense potential is harnessed for the greater good. By fostering an inclusive approach to AI development and governance, the world can navigate the challenges and opportunities this technology presents, ensuring it contributes to sustainable and equitable growth for all.