UNCTAD eWeek high-level panel discussion on the digital economy in the age of AI: Implications for developing countries

Excellencies,

Distinguished panelists,

Ladies and gentlemen,

This afternoon, we want to explore the transformative role of Artificial Intelligence (AI) in shaping the digital economy and the implications this has for developing countries.

The advent of AI has ushered in a new epoch in technological advancement. This new technological wave offers enormous opportunities but at the same time it is also a formidable challenge.

AI has the potential to revolutionize industries, enhance efficiency, and spur innovation across sectors. Its applications range from advanced data analytics and automation, to augmenting human capabilities in healthcare, agriculture, and education. It offers innovative pathways to tackle global challenges such as poverty, inequality, climate change, and resource management.

However, AI also presents complex ethical, social and economic considerations. The pervasive integration of AI into our lives raises critical questions about privacy, data security, and the ethical use of technology. There is growing concern about AI’s potential to disrupt labour markets, displace traditional jobs, and create new forms of inequality. Also, the unchecked expansion of AI technologies could lead to unforeseen environmental impacts.

There is great concern that the rapid growth of AI risks increasing already significant disparities in digitalization between and within countries. As it currently stands and as documented in our research, AI’s benefits are not evenly distributed across the globe. Countries at the forefront of AI development, such as the United States, China, and the United Kingdom, are making significant strides, whereas the least developed countries are struggling to keep pace.

If we look at history as a guide, it shows that missing the early stage of technological revolutions creates gaps that are very hard to close. Early adopters move ahead fast and reap the advantages for longer. This is the well-known first mover advantage. And clearly, there are signs that this is happening with AI.

The United States, China, and the United Kingdom dominate AI research. They hold nearly half of all AI-related patents. Moreover, the United States and China collectively account for half of the world’s hyperscale data centers, over 90 per cent of funding for AI startups and 70 per cent of all AI researchers.

We also see imbalances in terms of digital platforms. A few dominate this field – titans like Alphabet, Amazon, Apple, IBM, Meta, Microsoft, Alibaba and Tencent. They have privileged access to and control over data flows and digital service revenues. They are also likely to concentrate AI's direction and benefits, thus may exacerbate global inequities and deepen digital divides.

Ladies and gentlemen,

In today's discussion, we want to address how to harness AI’s potential while mitigating its risks. The discussions shall shed light on how developing countries can leverage AI for sustainable development and navigate the complexities it presents.

I thank you for joining us in this conversation and look forward to your insights and ideas.