The UNDP AI Report announced new findings on how artificial intelligence could reshape global economies. The agency reported that the AI shift may mirror the 19th century industrialisation period, which split societies into a wealthy few and many impoverished communities.

Philip Schellekens, Chief Economist for UNDP in Asia and the Pacific, revealed that only countries investing in skills, computing power and strong governance will benefit. Others, he warned, could fall far behind.

The UNDP AI Report highlighted that women and young adults face the greatest risk in the workplace. It added that improvements in health, education and income may weaken as AI adoption accelerates.

Meanwhile, data showed that AI could inject nearly one trillion dollars into Asia’s economy over the next decade. The agency noted that China, Singapore and South Korea have already made heavy investments and are gaining significant advantages. However, entry level workers in several South Asian countries are facing significant exposure to automation.

UNDP stated that limited infrastructure, skills, computing power and governance capacity are amplifying risks. These risks include job losses, data exclusion and increased global energy and water use linked to AI systems.

The UNDP AI Report urged governments to prioritise ethics and inclusive deployment. Kanni Wignaraja, UN Assistant Secretary General and UNDP Regional Director for Asia and the Pacific, reported that many countries remain at the starting line while AI continues to advance. She added that gaps are widening between those shaping AI and those being shaped by it.

For countries such as Cambodia, Papua New Guinea and Vietnam, the priority is to adopt simple, voice based AI tools that support frontline workers and farmers, even when internet access is unreliable.

The Asia Pacific region now accounts for more than half of the world population, placing it at the centre of the AI transition. The UNDP AI Report revealed several key indicators:

• More than half of global AI users are based in the region
• China holds nearly seventy percent of global AI patents
• Six countries host over three thousand newly funded AI companies

The report also stated that AI could raise annual GDP growth in the region by two percentage points and boost productivity by up to five percent in sectors such as health and finance.

UNDP noted a wide income gap. Afghanistan’s average income remains two hundred times lower than Singapore’s average, which explains why AI uptake is concentrated among wealthier nations.

Schellekens said that the region is not starting from a level playing field and described it as the most unequal region in the world.

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