Artificial intelligence could sharply widen global inequality unless countries take decisive policy action, according to a new report released by the United Nations Development Programme (UNDP). The study, “The Next Great Divergence: Why AI May Widen Inequality Between Countries,” warns that nations enter the AI era from vastly different starting points—and without intervention, those disparities could grow, reversing decades of development gains.
The report identifies Asia and the Pacific as the epicenter of the global AI transition. The region now accounts for more than half of the world’s AI users and is rapidly expanding its innovation footprint. China alone is responsible for nearly 70 percent of global AI patents, and more than 3,100 AI companies have recently secured funding across six regional economies. UNDP estimates AI could boost annual GDP growth in the region by about 2 percentage points, with productivity increases of up to 5 percent in sectors such as finance and health. ASEAN countries could collectively gain nearly $1 trillion in additional GDP over the next decade.
But these opportunities come with steep risks. Millions of jobs—especially those held by women and young people—are vulnerable to automation, the report finds. Women’s jobs are nearly twice as exposed, and youth employment is already declining in high-AI-exposure roles. Uneven digital readiness further deepens the divide: while countries such as Singapore, South Korea, and China invest heavily in AI infrastructure and skills, others still struggle with basic digital access, literacy, and computing capacity.
UNDP highlights real-world examples of AI improving public services, from Bangkok’s Traffy Fondue citizen-reporting platform to Singapore’s streamlined parenting services and Beijing’s use of digital twins in urban planning. Yet only a small number of countries have comprehensive AI governance frameworks, and UNDP projects that by 2027, more than 40 percent of AI-related data breaches could stem from misuse of generative AI.
“The central fault line in the AI era is capability,” said Philip Schellekens, UNDP Chief Economist for Asia and the Pacific. Countries that fail to invest in foundational digital infrastructure, skills, and governance, the report warns, risk falling further behind as AI accelerates global economic change.
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