A new UNDP report warns that unmanaged artificial intelligence (AI) could widen development gaps between countries, deepening inequalities in economic performance, human capabilities, and governance systems. Titled The Next Great Divergence: Why AI May Widen Inequality Between Countries, the report emphasizes that while AI offers significant opportunities for growth, countries start from highly uneven positions, and without strong policy interventions, existing disparities could increase, reversing decades of convergence in health, education, and income.
Asia and the Pacific, home to over 55% of the world’s population, is at the forefront of the AI transition, hosting more than half of global AI users and rapidly expanding its innovation ecosystem. China now holds nearly 70% of global AI patents, while over 3,100 AI startups have been funded across six economies. AI could boost regional GDP growth by around 2 percentage points annually and raise productivity by up to 5% in sectors such as health and finance, with ASEAN economies potentially adding nearly $1 trillion to GDP over the next decade. However, automation poses significant risks to jobs, especially for women and youth, if ethical and inclusive AI governance is not implemented.
Digital readiness across the region varies widely. Countries like Singapore, South Korea, and China are heavily investing in AI infrastructure and skills, while others are still building basic digital access and literacy. Limited infrastructure, computing capacity, and governance capabilities constrain AI’s potential benefits and amplify risks such as job displacement, data exclusion, and increased resource demands. Vulnerable groups—including women, youth, rural, and indigenous communities—face particular exposure to automation and algorithmic bias, exacerbating inequality in access to jobs and essential services.
AI is already transforming governance and public services in several countries. Bangkok’s Traffy Fondue platform processes nearly 600,000 citizen reports for faster municipal responses, Singapore’s Moments of Life service has reduced paperwork for new parents from 120 minutes to 15 minutes, and Beijing’s use of digital twins supports urban planning and flood management. These examples demonstrate AI’s potential to improve efficiency and public service delivery, but only a few countries have comprehensive AI regulations, leaving others exposed to risks such as generative AI misuse and data breaches.
UNDP experts stress that capability will be the defining factor in the AI era. Countries that invest in skills, computing power, and governance frameworks will reap benefits, while those that fail to act risk falling further behind. The report highlights the need for deliberate, inclusive policies to ensure AI contributes to shared progress rather than widening global inequalities.
