UN warns AI transition may deepen inequality in Asia-Pacific economies – Chinmaya IAS Academy

Context:

A recent UN report warns that the rapid adoption of Artificial Intelligence (AI) in the Asia-Pacific region may deepen existing socio-economic inequalities.
While AI investment has surged globally, countries in Asia-Pacific differ sharply in preparedness, infrastructure, and institutional capacity, raising concerns about an unequal digital future.

Key Highlights:

Rising AI Adoption and Investment

Global AI investment has increased nearly 15-fold in the last decade, with Asia-Pacific emerging as an active hub of AI expansion.
However, this transition is unfolding from highly unequal starting points across countries and within societies.

Disparities in AI Preparedness

The UN report highlights major gaps in readiness:
- Advanced economies show AI preparedness above 70%
- Fragile and low-income states remain below 20%
This uneven capacity risks excluding weaker economies from AI-driven growth.

Assessment Framework: IMF AI Preparedness Index

Within-Country Inequalities

Disparities are not only between countries but also within them.
Income and wealth remain concentrated among the top 10%, limiting broad-based participation in AI benefits.

Infrastructure Gaps: Hard and Soft Foundations

Inclusive AI adoption requires strengthening:
- Hard infrastructure: electricity, internet, computing systems
- Soft infrastructure: skilled workforce, strong institutions, legal frameworks
Many countries still lack reliable electricity and robust data systems.

Gender Dimension of Automation Risk

Women in Asia-Pacific face greater exposure to AI-driven automation compared to men, increasing risks of job displacement and gender inequality.

Significance / Concerns

AI may accelerate growth in well-prepared economies like Singapore, South Korea, and China, while widening the development gap for others.
Without inclusive governance, AI could reinforce existing inequalities in wealth, opportunity, and access.

Relevant Prelims Points:

AI investment has grown 15 times globally in a decade.
AI preparedness varies widely in Asia-Pacific: 70%+ in advanced economies vs <20% in fragile states.
Preparedness depends on infrastructure, human capital, labour policies, innovation, and ethical regulation.
Inequality persists within countries, with wealth concentrated among the top 10%.
Women are more vulnerable to AI-driven automation impacts.

Benefits + Challenges + Impact

Benefits: Productivity gains, innovation, economic transformation.
Challenges: Skill shortages, digital divide, weak institutions, unequal access.
Impact: AI could widen regional and social inequalities unless inclusively managed.

Relevant Mains Points:

Economy and Development Dimensions

AI can become a driver of the next growth wave, but unequal readiness risks creating “AI haves” and “AI have-nots.”
Developing nations may face job disruption without adequate reskilling systems.

Social Justice Concerns

AI adoption could deepen inequalities in:
- Employment access
- Education opportunities
- Gender outcomes
Concentration of AI benefits among elites threatens inclusive development.

Governance and Regulatory Needs

Strong public institutions are needed to ensure:
- Ethical AI use
- Data protection
- Fair access to innovation
Legal frameworks must prevent exclusion and discrimination in AI deployment.

Way Forward

UPSC Relevance (GS-wise):

GS 3 (Economy): AI-driven growth, digital divide, future of work
GS 2 (Social Justice): Inequality, gender impacts, inclusive development
GS 3 (Science & Technology): AI governance, preparedness, ethical frameworks