GENEVA

A new UN Development Programme (UNDP) report warned Tuesday that artificial intelligence (AI) could accelerate global inequality unless countries strengthen digital readiness and governance systems to manage the transition.

The report, The Next Great Divergence: Why AI May Widen Inequality Between Countries, said that while AI offers significant opportunities for growth, countries "begin this transition from highly uneven positions," raising the risk that existing divides in economic performance, human capabilities, and governance could deepen.

Asia and the Pacific, home to over 55% of the world’s population, sit at the center of this shift, according to the report. The region now accounts for more than half of global AI users and is rapidly expanding its innovation footprint, from China's rise to nearly 70% of global AI patents to more than 3,100 newly funded AI companies across six economies.

The report said AI could raise annual GDP growth by around 2% points in the region, and ASEAN economies could gain nearly $1 trillion in additional GDP over the next decade.

But the potential comes with mounting risks. Millions of jobs, particularly those held by women and young people, face high exposure to automation if ethical and inclusive governance is not prioritized.

In South Asia, the report said, women are up to 40% less likely than men to own a smartphone, underscoring persistent digital access gaps.

"AI is racing ahead, and many countries are still at the starting line," said Kanni Wignaraja, the UN assistant secretary-general and UNDP regional director for Asia and the Pacific. "The Asia and Pacific experience highlights how quickly gaps can emerge between those shaping AI and those being shaped by it."

The publication also highlighted the rapid expansion of AI in public administration, including platforms in Bangkok, Singapore, and Beijing that are transforming service delivery and urban planning. Yet comprehensive AI regulations remain limited, and by 2027 more than 40% of global AI-related data breaches may stem from misuse of generative AI.

"The central fault line in the AI era is capability," said Philip Schellekens, UNDP chief economist for Asia and the Pacific. "Countries that invest in skills, computing power and sound governance systems will benefit, others risk being left far behind."