AI and Global Disparities: A UNDP Report Highlights Growing Inequality

Artificial intelligence (AI) is poised to significantly impact global development, potentially widening the gap between affluent and impoverished nations, according to a recent report by the United Nations Development Programme (UNDP). Released on December 2, 2025, the report, titled "The Next Great Divergence: Why AI May Widen Inequality Between Countries," warns that without proactive policy interventions, AI could reverse decades of progress in reducing global disparities.

The UNDP's analysis highlights that while AI offers substantial opportunities for economic growth and improved public services, countries' varying levels of digital infrastructure, education, and governance could lead to a "great divergence" in development outcomes. Philip Schellekens, Chief Economist for UNDP's Asia Pacific Regional Bureau, emphasized this concern during a press briefing in Geneva, stating, "We think that AI is heralding a new era of rising inequality between countries, following years of convergence in the last 50 years."

Economic Implications

AI has the potential to boost annual GDP growth by approximately 2 percentage points and increase productivity by up to 5% in sectors such as finance and healthcare. For instance, ASEAN economies alone could see nearly $1 trillion in additional GDP over the next decade. However, these benefits are likely to accrue primarily to nations with advanced digital infrastructures and skilled workforces, leaving less developed countries at risk of falling further behind.

Labor Market Disruptions

The report indicates that 75% of surveyed firms anticipate job losses due to automation, alongside the creation of new roles. Notably, female employment is nearly twice as exposed to AI-driven automation as male employment. In countries like India and Indonesia, a significant portion of jobs remain informal, making them particularly vulnerable to AI-induced disruptions.

Governance Challenges

While AI can enhance service delivery and disaster response, many countries lack comprehensive AI regulations. By 2027, over 40% of global AI-related data breaches may result from the misuse of generative AI, underscoring the need for robust governance frameworks.

Regional Disparities

The Asia-Pacific region exemplifies the uneven readiness for AI adoption. Countries such as Singapore, South Korea, and China are making substantial investments in AI infrastructure and skills, positioning themselves to capitalize on AI's benefits. Conversely, nations like Afghanistan and the Maldives face significant barriers due to limited digital access and literacy. Approximately a quarter of the Asia-Pacific region lacks internet access, risking exclusion from the digital economy and furthering economic and social divides.

Recommendations and Call to Action

To mitigate AI's potential to exacerbate global inequalities, the UNDP urges policymakers to implement measures that promote inclusive development. This includes investing in digital infrastructure, education, and regulatory frameworks to ensure equitable access to AI's benefits and to address ethical, privacy, and cybersecurity risks. The report emphasizes the importance of prioritizing people over technology, calling for greater transparency and social protections to ensure that AI serves as a force for shared progress rather than a catalyst for increased disparity.

The UNDP's report serves as a crucial call to action, emphasizing the need for deliberate and inclusive policy choices to prevent AI from becoming a driver of increased global inequality.