Artificial Intelligence can improve productivity but a United Nations report warns about potential job loss disrupting economies.
According to the latest UN technology assessment, artificial intelligence (AI), is a technology that can enhance human intelligence. Intelligent machines can be more effective
Human and robot collaboration may spark a 5th industrial revolution. This could result in job losses.
According to the UN’s technology and innovation report 2025, a new wave in technological transformation is expected to reshape society and economy. The report warns that there is a danger that AI could replace many workers without creating enough jobs. It may also increase income inequality and widen job polarisation.
The report points out that developed nations are more likely to experience immediate changes in the labour market and a rise in wage inequality than developing countries. The report uses the UK as an illustration of a country in which a large share of employment is in managerial and professional occupations that are highly susceptible to AI augmentation. The report notes that AI-related automation may also lead to job losses in clerical and technician occupations.
Tech Inequality
This report highlights the fact that nearly half of occupations that would benefit from augmentation are faced with digital barriers. It also highlights a significant gender-related inequality in automation, largely due to the fact that women are more likely than men to hold the most exposed positions.
The report warned that “the proportion of women-held positions that are vulnerable to automation can be as high as twice that of men.” It also noted that the gender gap in digital skills and IT skills could limit the benefits AI adoption for women. This could potentially increase existing inequalities.
The UN states that since AI can augment or replace labour, productivity gains are dependent on long-term structural changes in the labour market. The report cited OECD findings from 2024 that stated: “If AI was designed and used primarily to replace labour, on the long-term, the declining employment shares in sectors that are AI intensive can reduce the overall economic impact of productivity gains.”
According to the UN, while productivity in AI-intensive industries may increase, the aggregate impact of productivity could be limited due to slower productivity growth in labor-intensive industries.
According to the report, governments should promote AI technologies that are human-complementary through increased funding for research and development, strategic public procurements and targeted tax incentives. It stated that “Improving the labour market and establishing clear career pathways can mitigate risk of brain-drain.”
Technological Dominance
UN also looked into where AI development is taking place. The report states that the majority of leading semiconductor companies are located in the US and other developed countries. The US has around one-third the top 500 supercomputers, and more than 50% of overall computing performance, based upon the TOP500 2024 benchmarks. China is ranked 2nd, with 80 out of the 500 top supercomputers. However, its total computation performance is less than a tenth of that of the US.
According to the UN, most developing countries are limited in their AI hardware and infrastructure. This hinders them from adopting and developing AI. This should raise concerns about supply chain vulnerabilities, and the desire of governments to gain autonomy in the development technologies that are critical for advancing national development goals.
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