UN Warns AI Threatens to Widen Global Divide, Erode Decades of Development Gains

New UNDP report urges urgent policy intervention to prevent a new era of inequality between nations

A new United Nations report released Tuesday warns that the rapid advancement of Artificial Intelligence (AI) risks creating a significant and damaging divergence between wealthy and poorer nations, potentially reversing decades of hard-won progress in global development.

The report, titled ‘The Next Great Divergence: Why AI May Widen Inequality Between Countries,’ from the UN Development Programme (UNDP), argues that while trade, technology, and international cooperation have helped narrow gaps in income, health, and education over the last 50 years, AI now threatens to unravel these gains.

“We are at risk of entering a new era of rising inequality between countries, following a long period of convergence,” stated Philip Schellekens, Chief Economist for the UNDP Asia Pacific Regional Bureau, during a press briefing in Geneva. “AI has the potential to create a ‘great divergence’ not just in economic performance, but also in the skill sets of populations and the capacity of governing systems.”

Key Mechanisms of Division:

The report outlines several critical pathways through which AI could exacerbate global disparities:

Economic & Productive Capacity: Advanced economies, with greater resources for investment in AI research, infrastructure, and implementation, are poised to achieve dramatic productivity boosts. Developing nations, lacking similar capital and technical foundations, risk falling further behind in competitiveness.

The Skills Chasm: AI is expected to disrupt labor markets globally, but the ability to adapt is unequal. Wealthier countries have more robust education and social security systems to retrain workers, while poorer nations may face widespread displacement without adequate safety nets, leading to a growing global disparity in relevant skills.

Governance & Regulation: The capacity to develop effective, ethical, and inclusive AI governance frameworks varies widely. Without such frameworks, developing countries are more vulnerable to algorithmic bias, surveillance, and a lack of accountability in AI systems deployed within their borders.

Spillover Risks for All Nations:

Schellekens emphasized that the negative consequences of allowing this divide to grow would not be confined to the developing world. He warned of significant global “spillover effects” that would impact even wealthy nations.

“If inequality between countries continues to rise, the repercussions in terms of global security challenges, geopolitical instability, and increased undocumented migration will become more daunting for everyone,” he said. Leaving poorer states behind in the AI revolution is, therefore, a shared strategic concern.

A Call for Proactive Policy:

The UNDP report serves as a urgent call to action for the international community. It advocates for concerted policy measures designed to ensure AI becomes a tool for inclusive development rather than division. Recommended steps include:

Global Cooperation: Strengthening international partnerships to facilitate technology transfer, knowledge sharing, and capacity-building in AI.

Targeted Investment: Directing resources toward building digital infrastructure and AI literacy in developing nations.

Inclusive Governance: Developing global norms and standards that prioritize equity, transparency, and human rights in AI development and deployment.

Social Protection: Creating stronger social safety nets and lifelong learning programs worldwide to help workforces navigate the AI-driven transition.

The message from the UN is clear: without deliberate and inclusive policy intervention, the AI revolution may not lift all boats but could instead anchor the world in a new and destabilizing era of inequality.