New UN report says AI can widen inequality gap between rich and poor countries, although SG is better positioned than others

SINGAPORE: A new report from the United Nations Development Program noted that the rapid advancement of artificial intelligence (AI) could contribute to widening inequality between rich and poor nations.

Titled “The Next Great Divergence,” the report released on Dec 2 acknowledged the benefits AI can bring yet noted that many countries lack the necessary infrastructure, skills, and governance systems to bring these about. These countries are already feeling AI’s economic and social disruptions, it added.

“This uneven mix of slow adoption and high vulnerability may trigger a Next Great Divergence, where inequalities between countries widen in the age of AI,” the report says, adding that this may be felt the most in Asia and the Pacific due to significant differences in income, digital readiness, and institutional capacity.

The report points out that 27 million youths in the region are illiterate, with 95% of them living in South Asia. Additionally, around one-quarter of the people living in the region do not have access to the Internet.

However, it lists Singapore among AI frontier economies in the region and calls the city-state one of the world’s leading AI powers, together with Japan, the Republic of Korea, and China.

“A few economies—such as Singapore, the Republic of Korea, and China – stand at the global frontier of AI research and adoption. They benefit from robust digital infrastructure, advanced STEM education systems, and dynamic technology ecosystems that attract investment and talent. These foundations enable them to experiment, scale, and integrate AI across industries at a pace comparable to leading global innovators,” the report reads.

AI is likely to drive growth in the Asia Pacific region, as it can lift productivity and spark new industries. However, countries such as the ones mentioned above are in a better position to reap these benefits, rather than, say, countries such as Afghanistan, Papua New Guinea, the Maldives, and Myanmar.

The starting line between the countries in the region is widely divergent, as the report points out. For example, Afghanistan’s gross national income (GNI) per capita last year was less than US$400 dollars (about S$520), while in Singapore, it was more than US$70,000 (S$90,670) making a difference of nearly a difference of nearly 200 times.

“In purchasing power terms, Singapore is around 70 times richer than Afghanistan,” the report noted.

It also called for governments to increase investments in digital infrastructure, education and training, fair competition, and social protections, given that AI, like electricity, roads, and the internet, is becoming more essential for daily living.

“AI’s power to transform is undeniable, but so is its potential to divide. The goal is to democratize access to AI so that every country and community can benefit while protecting those most at risk from disruption. This requires principles that put people and equity first,” it reads. /TISG

Read also: ‘AI isn’t killing our jobs but making new weird ones’ — AI product manager says he’s seeing ‘a lot about Artificial Intelligence creating new jobs’