AI’s Dividing Line: Opportunity or Inequality?

AI has rapidly expanded even in the past year. Countries are investing heavily in the new technology, hoping to see large returns on investment. AI can boost productivity, improve health and education, and help governments deliver more efficiently. It has the potential to reshape people’s opportunities and choices, freedoms and agency. However, as was the case with other historic general-purpose technologies, it hasn’t been spreading evenly. AI has the ability to close gaps or, at the same time, widen them. The current AI expansion in the Asia-Pacific, where a few advanced economies capture most of the gains, is a clear representation of the stark inequalities posed by AI.

Inequalities between countries

Yet, as with other historic general-purpose technologies, AI is not spreading evenly. Its benefits are clustering in places with strong digital foundations, while others struggle to keep pace. This uneven diffusion means that AI has the power to either close long-standing development gaps or widen them further, and at the moment, trends in the Asia-Pacific show the latter risk rising quickly.

Across the region, a small group of advanced economies, including Singapore, Japan, the Republic of Korea, and China, are capturing most of the gains. They benefit from reliable infrastructure, high connectivity, deep research capacity, and access to compute. In contrast, least developed countries and many small island developing states face unreliable power supply, limited internet access, and high costs of devices and data. These constraints weaken their ability to adopt AI tools or participate in AI-driven growth.

Inequalities within countries

Inequalities also manifest sharply within countries. Urban areas are integrating AI into schools, hospitals, and public services far more quickly than rural districts, where connectivity remains limited and data is sparse. Gender divides persist as well: women in South Asia, for example, are 40 percent less likely to own a smartphone, limiting their access to digital services, online work, and AI-enabled opportunities. Young people also face heightened risks in the labour market, with UN economists warning that youth and entry-level workers are among the most exposed to job displacement as automation expands across Asia-Pacific. Finally, gaps in digital skills, computing resources, and high-quality datasets shape who can meaningfully use or benefit from AI — and who remains excluded.

For an inclusive economic development

AI is a powerful and rapidly evolving tool — one with the potential to accelerate development across the region. But its benefits will only materialize if countries put the right governance structures, regulatory frameworks, and inclusion-focused policies in place. With deliberate choices and strong safeguards, AI can help build more resilient economies, expand opportunities, and ensure that no community is left behind. UNDP’s new flagship report, The Next Great Divergence, underscores this urgency, showing that in a region as unequal and diverse as Asia and the Pacific, proactive governance will determine whether AI becomes a force for shared progress or a driver of deeper divides.

Read the full report here.

Read the article on employment risks posed by AI here.