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AI Surge Threatens Millions of Jobs in Asia-Pacific as Inequality Widens


New delhi: Millions of jobs across Asia are at risk as the AI industry expands rapidly, benefiting wealthier nations while leaving poorer regions struggling with digital access and literacy challenges. According to United Nations economists, this digital divide mirrors the industrialisation era of the 19th century, which created a gap between wealthy and impoverished nations.

According to United Nations, the AI revolution could have profound impacts on employment, particularly affecting women and young adults. The UN Development Programme (UNDP) warns that countries investing in skills, computing power, and governance systems will gain advantages, whereas others may fall behind. The technology is anticipated to contribute nearly $1 trillion in economic gains over the next decade within Asia alone.

The UNDP report highlights that nations like China, Singapore, and South Korea have heavily invested in AI and seen substantial benefits. However, many South Asian countries face significant challenges due to auto
mation and other AI-driven changes. The report also emphasizes the constraints faced by countries with limited infrastructure and governance capacity, which exacerbate risks such as job displacement and increased global energy and water demands from AI systems.

To address potential job losses, UNDP urges governments to consider the ethical implications of AI deployment and strive for inclusive implementation. Kanni Wignaraja, UN Assistant Secretary-General and UNDP Regional Director for Asia and the Pacific, stresses the rapid emergence of disparities between AI developers and those influenced by AI advancements.

In countries like Cambodia, Papua New Guinea, and Vietnam, the focus is on utilizing existing voice-based tools that can assist health workers and farmers, even in areas with limited internet access. The Asia-Pacific region, home to over 55% of the world’s population, is central to this AI transition, with China holding nearly 70% of global AI patents and six countries hosting over 3,100 newly fund
ed AI companies.

The report suggests that AI could enhance annual GDP growth by approximately two percentage points and boost productivity by up to five percent in sectors like health and finance. However, the disparity in AI adoption is stark, with Afghanistan’s average income being 200 times lower than Singapore’s, underlining the concentration of AI advancements in wealthier nations.

Philip Schellekens, Chief Economist for the UNDP Asia and Pacific region, notes the region’s significant inequalities, stating, “We’re not starting from a level playing field in this region. This is the most unequal region in the whole world.”

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