AI Will Impact 40% of Jobs in Coming Years, UN Reports

According to UN forecasts, the global market for artificial intelligence (AI) is projected to reach $4.8 trillion by 2033, with AI technologies influencing 40% of jobs.

The UN reports that the proliferation of artificial intelligence technologies is expected to enhance labor productivity but could substantially increase inequality between developed and developing countries. Over the next decade, the market for artificial intelligence technologies is anticipated to grow approximately 25-fold, rising from $189 billion in 2023 to nearly $4.8 trillion by 2033 according to a report by the UN Conference on Trade and Development (UNCTAD).

The authors of the report note that the spread of AI technologies will contribute to productivity increases, digital transformation of economies, the emergence of new sectors, and expanded opportunities for workers. However, these benefits will be distributed very unevenly across the globe. UNCTAD believes that the spread of such technologies will exacerbate inequality both between developed and developing countries as well as within countries.

“Automation related to AI often reinforces the advantage of capital over labor, which may increase inequality and diminish the competitive advantage of low-cost labor in developing countries,” the report states.

Specifically, 118 countries, predominantly low-income countries, are not participating in international developments regarding artificial intelligence and are not developing their strategies in this direction. UNCTAD recommends more active engagement of these countries in developing regulatory frameworks for artificial intelligence, making information about these technologies more accessible, expanding education in this field, and creating open-source systems.

Approximately 40% of all investments in this sector are accounted for by about 100 companies, most of which are based in the USA and China. This is not the first report from a major international organization highlighting the negative impact of artificial intelligence on inequality and unemployment.

For instance, in January, the World Economic Forum presented data indicating that 41% of employers plan to reduce staffing in areas where artificial intelligence could replace them. Last year, International Monetary Fund Director Kristalina Georgieva stated that artificial intelligence will affect 26-60% of jobs across different countries.