Global AI market set to reach $4.8trn by 2033
By Seun Johnson
The global market for Artificial Intelligence has been projected to reach $4.8 trillion by 2033.
This projection was made by the United Nations Trade and Development, (UNCTAD) Thursday. According to the report, the growth which is about the size of Germany’s economy could lead to loss of jobs worldwide.
The report noted that while AI is transforming economies and creating vast opportunities, the technology also risks deepening existing inequalities.
In particular, the report cautioned that AI could impact 40 percent of jobs worldwide, offering productivity gains but also raising concerns about automation and job displacement.
While previous waves of technology mainly impacted blue-collar jobs, UNCTAD highlighted that knowledge-intensive sectors would be left most exposed by AI.
This means advanced economies will surely be hardest hit. It added that though, these economies were better positioned to harness the benefits of AI than developing economies.
“The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies,” UNCTAD said.
The agency Chief Rebeca Grynspan underlined the importance of ensuring people are at the centre of AI development, urging stronger international cooperation to shift the focus from technology to people, enabling countries to co-create a global artificial intelligence framework.
“History has shown that while technological progress drives economic growth, it does not on its own ensure equitable income distribution or promote inclusive human development,” Grynspan said in the report.
The report further revealed that in 2023, leading technologies such as internet, blockchain, 5G, 3D printing, and AI, represented about $2.5 trillion market, with the figure expected to increase to $16.4 trillion in the next decade.
It however stated that by 2033, AI will be the leading technology in this sector, with an expected value of $4.8 trillion.
“Countries should act now by investing in digital infrastructure, building capabilities, and strengthening AI governance. They could harness the AI potential for sustainable development.
“AI is not just about replacing jobs. The technology could also create new industries and empower workers. Investing in re-skilling, upskilling, and workforce adaptation is essential to ensure AI enhances employment opportunities rather than eliminating them, ” the report stated.
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