Developing nations face job losses and digital exclusion as AI sector surges

The global artificial intelligence market will reach $4.8 trillion by 2033, a 25-fold increase within a decade that mirrors the current size of Germany’s economy, according to a report released by UN Trade and Development (UNCTAD) on Saturday, 22 August. The projections indicate that AI-driven automation could impact up to 40% of jobs worldwide, threatening to erode the low-cost labor advantage that many developing economies rely on for poverty reduction. The UNCTAD data highlights a widening digital divide, noting that while AI is already being deployed for flood forecasting and rural healthcare, its benefits remain concentrated among a small group of economies and approximately 100 dominant firms. Concentrated Power and Infrastructure Gaps Currently, fewer than one-third of developing countries have a formal national AI strategy. In the least developed countries (LDCs), this figure drops to 12%. The report identifies a critical barrier to entry: 65% of people in LDCs remain offline, effectively excluding them from AI-driven growth. Furthermore, 118 nations—primarily in the Global South—are currently absent from major international AI governance forums where safety and…