The UN Development Programme (UNDP) has warned that the accelerating AI revolution risks deepening global inequality in ways comparable to the 19th-century industrial era, with women, young adults and entry-level workers facing the greatest exposure to disruption. In its latest report, UNDP cautions that while AI could generate nearly USD 1 trillion in economic gains across Asia over the next decade, the benefits will be uneven without urgent investment in skills, governance and infrastructure.
Philip Schellekens, UNDP Chief Economist for Asia and the Pacific, warned that ‘countries that invest in skills, computing power and sound governance systems will benefit, others risk being left far behind’. The report finds that despite China, Singapore and South Korea rapidly scaling AI and securing substantial economic advantage, many South Asian economies remain vulnerable to automation due to limited digital capacity.
UNDP said shortages in infrastructure, skills and computing power are amplifying risks such as job displacement, data exclusion, and indirect impacts, including rising energy and water consumption linked to AI systems. To prevent a jobs crisis, the agency is urging governments to embed ethical and inclusive safeguards before further AI rollout. ‘AI is racing ahead, and many countries are still at the starting line,’ said Kanni Wignaraja, UN Assistant Secretary-General and Regional Director for Asia and the Pacific.
Countries such as Cambodia, Papua New Guinea and Vietnam are prioritising low-tech AI tools, such as offline voice-based applications for farmers and frontline health workers, highlighting the region’s uneven readiness. The Asia-Pacific, home to 55% of the world’s population, now hosts more than half of all global AI users. China alone accounts for nearly 70% of global AI patents, while more than 3,100 newly funded AI firms are concentrated in six regional economies.
UNDP estimates AI could lift annual GDP growth in the region by two percentage points and increase productivity by up to 5% in sectors such as health and finance. But vast economic gaps persist: Afghanistan’s average income is 200 times lower than Singapore’s, underscoring what Schellekens describes as “the most unequal region in the whole world”.