New ILO Report Warns AI Revolution Could Widen Global Inequality Without Cooperative Action

The report underscores that while AI offers significant opportunities for innovation and productivity, its benefits are disproportionately enjoyed by high-income countries.

A new report from the International Labour Organization (ILO) and the UN Office of the Secretary General’s Envoy on Technology, titled Mind the AI Divide: Shaping a Global Perspective on the Future of Work, highlights a growing disparity between high and low-income countries in the face of the Artificial Intelligence (AI) revolution. The report warns that without international cooperative efforts, AI advancements could exacerbate economic and social inequalities, further entrenching the divide between wealthier and less affluent nations.

The report underscores that while AI offers significant opportunities for innovation and productivity, its benefits are disproportionately enjoyed by high-income countries. These nations are well-positioned to leverage AI for productivity gains due to their advanced digital infrastructure and resources. In contrast, low- and medium-income countries, particularly in Africa, face significant barriers due to insufficient digital infrastructure, limited access to technology, and gaps in quality education and training.

The report highlights several critical points:

Economic and Social Inequality: The uneven adoption of AI technologies is likely to deepen existing global inequalities. High-income countries are rapidly advancing, while developing nations lag behind, risking a long-term barrier to economic prosperity.

Digital Infrastructure: Developing countries struggle with inadequate digital infrastructure, which impedes their ability to adopt AI technologies. Investments in digital infrastructure, including access to electricity, broadband, and modern communication technologies, are crucial for supporting AI integration.

Technology Transfer: The report advocates for high-income countries to assist in transferring AI technologies and knowledge to developing nations. This collaborative approach can foster technological advancement and help bridge the gap.

AI Skills Development: Investment in education and training is essential to equip the workforce in developing countries with the necessary AI skills. This will enable workers to adapt to and benefit from AI-driven changes, mitigating the risk of a “virtual brain drain” where skilled workers contribute to other economies through freelance platforms.

Gender Disparities: Women in developing countries are particularly vulnerable to AI-driven job displacement, especially in clerical and outsourcing roles prevalent in these economies. While automation poses risks, it also offers potential for job augmentation and improved job quality.

The report proposes three policy pillars to address the AI divide:

Strengthened International Cooperation: Collaborative efforts between countries are necessary to ensure that AI benefits are equitably distributed.

Building National Capacity: Developing countries must build their digital infrastructure and invest in education and training to support AI adoption.

Addressing AI in the World of Work: Effective integration of AI requires social dialogue to protect workers' rights and enhance job quality.

The Mind the AI Divide report calls on policymakers, industry leaders, and international organizations to unite in shaping a fair and inclusive AI-driven future. The report emphasizes that proactive strategies and global partnerships are essential to closing the technological gap and ensuring that the AI revolution benefits all, rather than exacerbating existing inequalities.