A new report from the United Nations has raised alarms over the global impact of artificial intelligence, warning that the technology could widen inequality between wealthy and developing nations unless governments take urgent, coordinated action.

The report, titled “The Next Great Divergence,” was published by the United Nations Development Programme (UNDP) Asia and Pacific regional bureau, and outlines how rapidly advancing AI tools may dramatically reshape economies, education systems, and labour markets—benefiting some countries while leaving others behind.

AI Risks Reversing 50 Years of Declining Inequality

For decades, global inequality between countries has gradually narrowed. But according to UNDP chief economist Philip Schellekens, AI could reverse that long-term trend.

“We think that AI is heralding a new era of rising inequality between countries,” Schellekens said during a briefing in Geneva.

The report compares today’s AI revolution to the Industrial Revolution, which transformed societies but also widened the gap between industrialized nations and those still developing. AI could unlock massive opportunities, the report says—but only for countries equipped with strong digital infrastructure, advanced skills, and stable governance.

Why Leaving Countries Behind Would Hurt Everyone

The UNDP stresses that even wealthier nations will feel the impact if developing countries fail to benefit from AI. Rising inequality could lead to:

• increased security tensions,
• higher levels of irregular migration, and
• deeper economic instability.

These global spillover effects, Schellekens warns, could challenge international cooperation and peace.

Asia Pacific: The World’s AI Centre—and a Region at Risk

The report focuses largely on the Asia Pacific, home to more than 55% of the global population and now a key hub for AI adoption. More than half of the world’s AI users are already in the region, and the technology is creating significant opportunities, including:

• improved tutoring and remote education,
• faster disease diagnosis,
• new financial tools for small businesses,
• and stronger disaster-response systems.

If properly supported, AI could boost annual GDP growth across the region by 2 percentage points and generate almost $1 trillion in additional output for ASEAN economies over the next decade.

Benefits Not Reaching Everyone

But a major concern remains: AI gains are being distributed unevenly.

Countries such as Singapore, Japan, and China—which have strong digital networks and technological expertise—are seeing rapid benefits. Others, however, are constrained by:

• unreliable electricity,
• weak internet connection,
• low digital literacy,
• and gaps in technical training.

As AI tools automate routine tasks, the report warns that millions of jobs—especially among women and young people—could be displaced without protective policies.

The Future of AI Must Be Shaped by People, Not Machines

The report emphasizes that the direction AI takes is not predetermined. The outcome will depend on policy choices made today.

“Ultimately, it should not be machines but the world’s people who choose which technologies to prioritize and how best to exploit them,” the UNDP concludes.

The message is clear: global cooperation, smart regulation, investment in skills, and equal access to digital infrastructure will be essential to prevent a new era of divide—one that could shape geopolitics, development, and economic opportunity for generations.