AI could affect 40% of Jobs Worldwide

The dawn of artificial intelligence (AI) marks one of the most significant technological shifts in history.

Its influence is no longer confined to tech sectors; it is reshaping economies, industries and the global workforce.

However, a new report from the United Nations Trade and Development agency (UNCTAD) warns that AI could affect 40% of jobs worldwide in the coming years.

The technology offers enormous potential for innovation and growth, but it also presents serious challenges for workers and policymakers.

As artificial intelligence advances rapidly, questions about fairness, access and regulation are becoming increasingly urgent.

The Emerging AI Economy

AI is expected to reach a market value of $4.8 trillion (£3.7 trillion) by 2033, rivalling the size of the German economy. However, UNCTAD notes the benefits are unevenly shared.

In their report, UNCTAD said the technology would drive productivity and digital transformation. Its growth is rapid, outpacing earlier waves of innovation.

It detailed: “In 2023, so-called frontier technologies like the internet, blockchain, 5G, 3D printing and AI, represented a $2.5 trillion market, with that number expected to increase sixfold in the next decade to $16.4 trillion.

“By 2033, AI will be the leading technology in this sector, with an expected value of $4.8 trillion.”

This signals a major shift in how value is created globally. Yet AI infrastructure and expertise are largely concentrated in a handful of nations and firms.

The Widespread Impact on Global Employment

UNCTAD warns: “AI could impact 40% of jobs worldwide, offering productivity gains but also raising concerns about automation and job displacement.”

This mirrors concerns raised by other global institutions.

Unlike past industrial revolutions, artificial intelligence threatens white-collar roles.

“While previous waves of technology mainly impacted blue-collar jobs, UNCTAD highlighted that knowledge-intensive sectors would be left most exposed by AI.”

The effects vary globally.

The IMF reports: “In advanced economies, around 60% of jobs may be impacted by AI.

“In contrast, in emerging markets, exposure to AI is expected to affect 40% of jobs.”

The World Economic Forum adds: “41% of companies around the world plan to reduce their workforces by 2030 because of AI.”

Many firms are already reshaping strategies based on these forecasts.

Inequality Concerns

AI could worsen inequality as UNCTAD warned:

“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies.”

Within countries, the divide may deepen: “Workers able to make effective use of AI may see an increase in their wages and productivity, whilst those who cannot risk falling behind.”

Globally, development is highly concentrated.

“40% of global corporate research and development spending in AI is concentrated among just 100 firms, mainly those in the US and China.”

Tech giants like Apple, Nvidia and Microsoft now hold market values comparable to Africa’s GDP. This illustrates the vast concentration of wealth in the AI sector.

UNCTAD chief Rebeca Grynspan called for global collaboration to “shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework”.

She added: “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.”

Governance Challenges & International Representation

Governance is also lagging. UNCTAD highlights that “118 countries, mostly in the Global South, are absent from major AI governance discussions”.

This lack of representation could result in policies that serve only advanced economies.

Without inclusive regulation, AI risks reinforcing global inequalities.

“As AI regulation and ethical frameworks take shape, developing nations must have a seat at the table to ensure AI serves global progress, not just the interests of a few.”

Knowledge-intensive sectors now face automation, threatening to block the path of economic mobility for developing countries.

Pathways to an Inclusive AI Future

Despite concerns, UNCTAD stresses: “AI is not just about replacing jobs” but also offers a chance to “create new industries and empower workers”.

Reskilling is essential. The World Economic Forum found that “77% of businesses plan to reskill and upskill existing workers between 2025-2030, in an effort to get the most out of programs such as ChatGPT and Sora”.

“Investing in reskilling, upskilling, and workforce adaptation is essential to ensure artificial intelligence enhances employment opportunities rather than eliminating them.”

UNCTAD recommends public disclosure for AI systems, shared infrastructure, open-source models, and global knowledge-sharing initiatives.

“AI can be a catalyst for progress, innovation, and shared prosperity but only if countries actively shape its trajectory.”

“Strategic investments, inclusive governance, and international cooperation are key to ensuring that AI benefits all, rather than reinforcing existing divides.”

AI’s potential to impact 40% of global jobs presents both vast opportunities and serious challenges.

With a projected £3.7 trillion market by 2033, its rise rivals past industrial revolutions but its reach is broader and faster.

Knowledge-sector jobs now face disruption, requiring urgent shifts in education, policy, and economic planning.

The concentration of AI power among a few nations and firms raises deep concerns about fairness. Without efforts to broaden access and representation, existing inequalities could worsen.

But the future is not set. With proactive policies and inclusive governance, AI can become a tool for shared growth rather than division.