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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.
A view of the Grand Ethiopian Renaissance Dam in Benishangul-Gumuz, Ethiopia on Sept 9. (AP)
ADDIS ABABA, Ethiopia, Sept 10, (AP): Ethiopia on Tuesday inaugurated Africa’s largest dam to boost the economy, end frequent blackouts and support the growth of electric vehicle development in a country that has banned the importation of gasoline-powered vehicles. As reservoir waters flowed into the turbines of the Grand Renaissance Dam, Ethiopians dressed in colorful regalia viewed the ceremony on large screens across the capital, Addis Ababa, and celebrated the achievement with dancing to traditional music.
“We will have enough power to charge our electric vehicles from the new dam,” said Belay Tigabu, a bus driver in Addis Ababa’s main bus terminal. The almost $5 billion mega-dam, located on the Blue Nile tributary of the Nile River near Ethiopia’s border with Sudan, will produce more than 5,000 megawatts and is expected to double national electricity generation capacity, according to officials. Ethiopia’s Prime Minister Abiy Ahmed, speaking during the launch, said the dam was a “big achievement” that would show the world what Africans are capable of accomplishing.
Dozens of visiting African heads of state and government joined Abiy for the inauguration, with many expressing interest in importing power from Ethiopia. “I am proud to announce we will soon be signing an agreement with the government of Ethiopia to receive electricity from the dam that will benefit our hospitals and schools,” said South Sudan’s President Salva Kiir. Kenyan President William Ruto said his nation is looking to sign a power purchasing agreement with Ethiopia based on the resources of the dam project, which he said was a “pan-African statement.”
Already an importer of Ethiopia electricity, Ruto said Kenya is seeking to alleviate the electricity deficit his country is experiencing. He said the dam “exemplifies the scale and ambition of African-led infrastructure and aligns with the Africa Union’s vision of continental energy connectivity.” But Ethiopia’s new dam has faced controversy, with neighboring Egypt expressing concerns over reduced water flows downstream.
Egypt has long opposed the dam because of concerns it would deplete its share of Nile waters. The Arab world’s most populous country relies almost entirely on the Nile to supply water for agriculture and its more than 100 million people. Tamim Khallaf, a spokesperson for Egypt’s Ministry of Foreign Affairs, told The Associated Press that the dam posed an “existential threat.”
A dealer stands near the screens showing the Korea Composite Stock Price Index (KOSPI), (left), and the foreign exchange rate between US dollar and South Korean won at a dealing room of Hana Bank in Seoul, South Korea on Sept 10. (AP)
TOKYO, Sept 10, (AP): Asian shares mostly rose in early Wednesday trading, echoing record rallies on Wall Street after the latest update on the job market bolstered hopes the US Federal Reserve will cut interest rates. Japan’s benchmark Nikkei 225 gained 0.9% to finish at 43,837.67. Australia’s S&P/ASX 200 added 0.3% to 8,830.40.
South Korea’s Kospi jumped 1.7% to 3,314.66. Hong Kong’s Hang Seng rose 1.1% to 26,223.30, while the Shanghai Composite edged up 0.2% to 3,814.63. Uncertainty is still in the air over US-China tariff issues as bilateral talks continue. US President Donald Trump has raised taxes on imports from China, triggering a tit-for-tat tariff war.
The U.S. is currently charging an additional 30% tariff on Chinese goods and China is charging a 10% tariff under a de-escalation deal reached in May. On Wall Street, the S&P 500 rose 0.3% and squeaked past its all-time high set last week. The Dow Jones Industrial Average climbed 196 points, or 0.4%, while the Nasdaq composite gained 0.4%.
They likewise set records. Traders have become convinced that the Federal Reserve will cut its main interest rate for the first time this year at its next meeting in a week, in order to prop up the slowing job market. A report on Tuesday offered the latest signal of weakness, when the US government said its prior count of jobs across the country through March may have been too high by 911,000, or 0.6%.
That was before President Donald Trump shocked the economy and financial markets in April by rolling out tariffs on countries worldwide. The bet on Wall Street is that such data will convince Fed officials that the job market is the bigger problem now for the economy than the threat of inflation worsening because of Trump’s tariffs.
That would push them to cut interest rates, a move that would give the economy a boost but could also send inflation higher. A lot is riding on Wall Street’s hope that the job market is slowing by just the right amount: Investors have already sent US stock prices to records because of it. Inflation also needs to stay at a reasonable level, even though it looks tough to get below the Fed’s target of 2%. In the bond market, the yield on the 10-year Treasury rose to 4.08% from 4.05% late Monday.
Ethiopia inaugurates Africa’s largest hydroelectric dam as neighbors eye power imports
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