Business
Global AI market to reach $4.8 trillion by 2033, impacting 40% of jobs: UNCTAD
UNCTAD warns AI could affect 40% of jobs, boosting productivity but raising job displacement concerns.
NEW YORK, April 3: The United Nations (UN) has projected that the global artificial intelligence (AI) market could reach $4.8 trillion by 2033, equivalent to the size of Germany’s economy, raising concerns over the potential impact on jobs worldwide. According to a new report from the UN Conference on Trade and Development (UNCTAD), nearly half of jobs globally could be affected by the rapid advancement of AI.
While AI is seen as a transformative force that can drive economic growth and create opportunities, the report warns that the technology may also exacerbate existing inequalities. UNCTAD highlighted that AI could impact up to 40% of jobs globally, offering productivity gains but also raising significant concerns about automation and job displacement.
Historically, previous waves of technological advancements have primarily impacted blue-collar jobs. However, UNCTAD noted that AI is poised to affect knowledge-intensive sectors the most, making advanced economies particularly vulnerable. These economies, while more capable of leveraging the benefits of AI, will face challenges in managing the widespread effects on employment.
The report also cautioned that the benefits of AI-driven automation often favor capital over labor, which could deepen inequalities. The displacement of low-cost labor in developing countries could reduce their competitive advantage, further widening the gap between developed and developing economies.
In her statement, UNCTAD Secretary-General Rebeca Grynspan stressed the importance of placing people at the center of AI development. She urged stronger international cooperation to focus on “people-first” policies and enable countries to co-create a global AI framework that fosters inclusive economic growth.
“History has shown that while technological progress drives economic growth, it does not, on its own, ensure equitable income distribution or promote inclusive human development,” Grynspan said.
The UNCTAD report also revealed that in 2023, frontier technologies such as AI, blockchain, 5G, and 3D printing represented a $2.5 trillion market. This figure is expected to grow sixfold, reaching $16.4 trillion by 2033, with AI emerging as the dominant technology in this sector. By 2033, AI is expected to constitute a $4.8 trillion market.
However, the report warned that access to AI infrastructure and expertise is currently concentrated in a few economies, particularly the United States and China, which together account for 40% of global corporate research and development spending.
“Countries should act now,” the agency advised, emphasizing that by investing in digital infrastructure, building capabilities, and strengthening AI governance, nations can harness AI’s potential for sustainable development.
UNCTAD also highlighted that AI is not solely about job displacement but has the potential to create new industries and empower workers. To fully capitalize on these opportunities, the agency stressed the importance of investing in reskilling, upskilling, and workforce adaptation.
The report underscored the need for global participation in AI governance discussions, noting that 118 countries, mostly in the Global South, are currently absent from major AI policy-making platforms. As AI regulation and ethical frameworks continue to develop, UNCTAD emphasized that developing nations must be included in these conversations to ensure that AI serves global progress, rather than the interests of a select few.
As AI continues to shape the economic landscape, the UN agency calls for a concerted effort to ensure the technology is deployed in a way that benefits all nations and promotes equitable development worldwide.
TWO of the biggest American oil companies, ExxonMobil and Chevron, are locked in a legal battle over an oilfield in Guyana. Both companies are industry giants and pioneers with a presence in oil fields worldwide. They have their hands in every oil field, regardless of location. Oil is their bread and butter. They are the biggest in the field with unmatched expertise. Today, however, they find themselves in a legal battle in a London court over the ownership of a massive oil project, estimated to hold over$1 trillion in reserves. The outcome of this case carries huge implications for the global oil industry. The two U.S. oil supermajors are battling over a 30 percent stake in a major oil field in Guyana, which is currently owned by Hess Corporation, a U.S. energy company that agreed to a $54 billion takeover by Chevron in 2023.
ExxonMobil, which already owns approximately 45 percent of the same field, claims it holds a “first right of refusal” under its existing agreement. This is likely to be a long legal battle over a valuable oil reserve, which is what every oil company wants. The fight between the world’s two biggest oil firms could shape the future of the industry. Whoever wins will strengthen their position in the global market. For ExxonMobil, the most valuable American oil company, winning could help it stay on top. The two oil companies are no match for national oil companies in terms of oil reserves, nor do they possess as much oil as those state-owned companies.
However, they do have the know-how, the experience, and the technology to operate in almost any oil field in the world. They are always in desperate need of more oil reserves and will go anywhere, to any place, in search of a few barrels of black gold. It is their bread and butter. For Guyana, with its small population and clean environment, there is no real need for the polluting effects of black oil to disrupt its natural surroundings. However, the financial rewards are too great to ignore, offering the country a chance to place itself on the global energy map. With oil reserves exceeding 12 billion barrels, and more expansion on the horizon, Guyana stands to gain immensely. The current legal battle between the two oil giants is over a prize worth more than $1 trillion. In the end, Chevron has more at stake and a greater need to win, as it aims to boost its oil reserves to better compete with the world’s leading oil company, ExxonMobil. It is a matter of competition and narrowing the gap with its top rival. Without a doubt, this is a case well worth fighting for.
By Kamel Al-Harami
Independent Oil Analyst
Email: [email protected]
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