Artificial Intelligence (AI) is poised to become a major driver of economic transformation, with its market value projected to reach $4.8 trillion by 2033, according to the latest report by the United Nations Conference on Trade and Development (UNCTAD). However, the benefits of AI remain unevenly distributed, with many developing nations lacking the infrastructure, strategies, and capabilities to participate fully in the emerging AI economy.
In its Technology and Innovation Report 2025, UNCTAD warns that although AI holds significant potential for advancing sustainable development, it is not inherently inclusive. The report stresses that immediate action is required to avoid deepening the existing technological divide. It identifies digital infrastructure, data availability, and workforce skills as key areas in which developing countries must invest to unlock AI’s potential. UNCTAD Secretary-General Rebeca Grynspan highlighted the disparity in AI readiness, noting that fewer than one-third of developing countries have adopted national AI strategies.
She stated that 118 countries, largely in the Global South, remain excluded from global discussions on AI governance. Grynspan emphasized the urgency of international cooperation to ensure that AI advances serve people first, rather than technology alone. The report outlines the growing concentration of AI development, pointing to the dominance of just 100 companies primarily based in the United States and China that are responsible for 40 percent of global corporate research and development spending.
Notably, technology leaders such as Apple, Nvidia, and Microsoft have each reached market capitalizations nearing $3 trillion, comparable to the entire GDP of the African continent. UNCTAD argues that AI can generate new industries and enhance job opportunities, countering concerns that automation may primarily displace workers. The report calls on policymakers to implement targeted AI policies that focus on strategic leverage points namely infrastructure, data ecosystems, and digital skills development to enable inclusive innovation and economic integration.
The agency also underscored the importance of aligning AI with local development goals, suggesting that nations which prioritize capacity building in these areas will be better positioned to adapt to AI technologies and foster homegrown innovation. In doing so, they can shape AI in ways that reflect national socioeconomic priorities. UNCTAD concluded its statement by urging the international community to engage in the creation of a shared global AI framework. This, the organization said, would help bridge technological gaps and ensure that the advantages of AI are accessible to all countries, not just a select few. – By MENA Newswire News Desk.
