In a groundbreaking report, the United Nations Conference on Trade and Development (UNCTAD) has projected that the global artificial intelligence market will surge to approximately $4.8 trillion by 2033, a value comparable to the size of Germany’s economy.
This remarkable growth highlights AI as one of the most transformative technological advances of the 21st century, reshaping economic and social landscapes worldwide.
The report notes that rapid adoption of AI technologies is driving extensive innovations across industries—from manufacturing and services to education, healthcare, and transportation.
However, the transformative impact comes with significant challenges: UNCTAD warns that AI could affect up to 40% of global jobs, particularly in knowledge-based sectors such as administrative and office work, potentially exacerbating existing inequalities.
The report further explains that while AI is anticipated to boost productivity, its benefits may accrue primarily to capital—widening the gap between high-skill and low-skill workers. Current investment in advanced technologies, including the internet, blockchain, 5G, 3D printing, and AI, reached about $2.5 trillion in 2023 and is expected to grow sixfold to roughly $16.4 trillion over the next decade. In this dynamic shift, AI is poised to become the dominant technology, making up a significant share of this expanded market.
UNCTAD calls on governments worldwide to invest in digital infrastructure, build advanced skills, and enhance AI governance frameworks. Such initiatives are critical not only to harness the immense economic potential of AI but also to ensure that its benefits are distributed equitably.
The report emphasizes that a handful of economies currently control most AI-related R&D spending—about 40% of global expenditures—underscoring the need for broader international cooperation, especially among emerging economies that risk being left behind.
Moreover, while the technological revolution propelled by AI presents unprecedented opportunities, UNCTAD stresses the importance of re-skilling and up-skilling the global workforce to transform job displacement into new avenues for innovation and growth.
The report also highlights that 118 countries are currently absent from key discussions on AI governance, leaving a gap in establishing a global framework that ensures AI is developed in the service of sustainable, inclusive growth.
