While artificial intelligence promises to reshape economies around the world, most of the Global South isn’t part of the conversation. According to UNCTAD, 118 countries, mostly in the Global South, are missing from major AI governance talks. Wealthy nations are leading the rules for AI, while developing countries have little say. UNCTAD warns this could deepen global inequality unless action is taken. The agency says AI isn’t naturally inclusive. Its benefits could stay locked in rich countries unless leaders work to spread them out.
Money is a big part of the problem. UNCTAD says AI’s economic gains will likely go to capital-heavy firms and advanced economies first. Automation may favor capital over workers, making inequality worse. A small group of countries already leads in AI capability. This leaves many developing nations dependent on outside technology, with little power to shape markets or standards.
Jobs are also at risk. AI could weaken the low-cost labor advantage that many developing economies rely on. High-skill jobs may grow faster than jobs for everyone else. Wages and labor’s share of income could drop, according to concerns tied to World Bank research. Workers in agriculture, manufacturing, services, and gig work face the highest risk. Informal jobs, common across the Global South, are especially vulnerable.
Meanwhile, the Global South already powers much of the world’s hidden digital labor. Workers label data, moderate online content, and complete small digital tasks for global tech companies. These jobs often pay little and offer few protections. Some workers face graphic or harmful content daily. UNCTAD notes that this system can create jobs while also increasing exploitation.
Infrastructure gaps make the divide worse. Many developing countries lack computing power, reliable data systems, or strong internet connections. Fewer than one-third of developing nations have a national AI strategy. Without stronger infrastructure, these countries may struggle to build their own AI industries or keep value inside their borders.
UNCTAD says inclusive governance is key to avoiding fragmented, duplicated efforts. Least developed countries, in particular, need a stronger voice. Without shared participation, the agency warns, AI’s promise could deepen the very inequalities it might otherwise help solve. Adding to these concerns, U.S. intelligence agencies have been found to purchase citizens’ private data in bulk, exploiting the data broker loophole to bypass legal protections without court oversight.
References
- https://unctad.org/press-material/ais-48-trillion-future-un-trade-and-development-alerts-divides-urges-action
- https://unctad.org/news/ais-48-trillion-future-un-trade-and-development-alerts-divides-urges-action
- https://unctad.org/publication/technology-and-innovation-report-2025
- https://unctad.org/system/files/official-document/presspb2025d2_en.pdf
- https://unctad.org/system/files/official-document/tir2025overview_en.pdf
- https://unctad.org/system/files/official-document/tir2025ch5_en.pdf
- https://unctad.org/news/divides-dialogue-heres-how-developing-countries-can-catch-ai-boom
- https://unctad.org/system/files/official-document/tir2025ch3_en.pdf
- https://unctad.org/system/files/information-document/ppt_ai26cstd_Dotan_en.pdf
- https://unctad.org/system/files/official-document/tir2025ch1_en.pdf
