When AI Deepens Divides - Why the Next Great Divergence Could Leave Millions Behind

Posted on December 03, 2025 at 09:26 PM

When AI Deepens Divides: Why the “Next Great Divergence” Could Leave Millions Behind

A new warning from United Nations Development Programme (UNDP) is raising alarms: without deliberate action, artificial intelligence (AI) may widen the economic and social gap between rich and poor nations — and even exacerbate inequalities within them. The report, titled The Next Great Divergence: Why AI May Widen Inequality Between Countries, argues that AI’s benefits risk flowing overwhelmingly to well-connected, well-resourced countries — leaving vulnerable communities stranded. (UNDP)


🌍 A new “Great Divergence”? What the report warns

  • Uneven readiness → unequal gains. The report notes that while AI adoption globally has surged — with some 1.2 billion users in just three years — the ability to benefit from AI remains highly uneven. In many high-income nations, up to two-thirds of people now use AI tools, but in many low-income countries usage remains close to 5%. (UNDP)
  • Old trend reversed. For decades, globalization, trade and technology helped close development gaps across countries, improving income, education and health. But UNDP warns that unmanaged AI could reverse that trend — sparking a “new era of rising inequality.” (The Straits Times)
  • Winners & losers. Nations with strong digital infrastructure, computing power, governance, and skills are poised to capture disproportionate benefits. Countries lacking those basics face risks: job loss, data exclusion, digital illiteracy, and vulnerability to systemic biases. (UNDP)

Who’s most at risk — and who stands to benefit

  • Vulnerable communities: rural, poor, marginalized. Especially people in regions with weak internet access, limited electricity, or little formal education stand to lose out. In the Asia-Pacific region alone, about a quarter of the population still lacks online access — meaning many could be “left out of the global AI economy.” (ABC News)
  • Women and youth. The report flags particular concern for women and young people, who disproportionately work in jobs likely to be disrupted by automation. In parts of South Asia, for example, women are up to 40% less likely than men to own a smartphone — limiting their access to digital tools. (UNDP)
  • Countries with digital foundations. On the flip side, nations such as Singapore, China, South Korea and other technologically advanced economies are well positioned to leverage AI — thanks to existing internet infrastructure, education systems, and technological investment. (Business Standard)

Potential Upsides — But Only With the Right Conditions

The report doesn’t argue that AI is inherently bad. On the contrary: if managed well, AI could yield wide benefits:

  • Boost to economies. For regions with proper support, AI could raise productivity by up to 5% in sectors like healthcare and finance, while potentially lifting GDP growth by roughly 2 percentage points. For example, economies in Southeast Asia could collectively add nearly US$1 trillion to their GDP over the next decade. (UNDP)
  • Better public services. AI-powered tools — from disaster risk forecasting, healthcare diagnostics, to personalized education — could deliver transformative value, especially in rural or underserved areas. (AP News)
  • Leap-frogging potential. For some developing countries, AI offers a chance to catch up — but only if they invest in digital infrastructure, skills, and fair governance. (UNDP)

The Risks — If We Fail to Act

  • Digital exclusion. People without reliable internet, electricity or devices may become increasingly excluded — unable to access jobs, digital finance, education, or social services. (WSLS)
  • Job displacement and social disruption. As AI automates tasks, especially in low-skill jobs, displacement may disproportionately hit vulnerable populations, possibly exacerbating poverty and migration pressures. (Reuters)
  • Governance, bias and privacy risks. Without adequate regulation, AI systems can reinforce biases, exclude marginalized groups from datasets, amplify misinformation, or even lead to mass surveillance. (The Washington Post)
  • Environmental strain. High-capacity data centers powering AI consume large amounts of electricity and water — potentially undermining sustainability efforts. (The Washington Post)

What Needs to Happen — From Policymakers to Tech Leaders

To avoid a widening chasm, the report urges urgent, coordinated action:

  • Invest in digital infrastructure and skills training. Build reliable internet, electricity and computing access — especially in underserved regions. Equip people with digital literacy and AI-related skills. (UNDP)
  • Deploy fair, inclusive policies. Regulation and governance must prioritize inclusive access, social protections, fair competition, data rights, and privacy. (WSLS)
  • Use AI as a public good, not just profit driver. Governments and NGOs can steer AI toward health, education, agriculture and disaster response — ensuring broader social benefits, not just corporate gain. (UNDP)

Glossary

  • Digital divide — The gap between those who have access to digital technologies (internet, devices, electricity) and those who do not. (Wikipedia)
  • AI dividend — The economic and social gains (productivity, growth, services) that arise from adopting AI. (UNDP)
  • Automation / Job displacement — The replacement of human labor by AI or automated systems, potentially leading to job loss for certain groups.
  • Algorithmic bias / data exclusion — When AI systems produce unfair outcomes because the data they were trained on under-represent certain groups (e.g., rural communities, women, minorities).
  • Governance (in AI context) — Policies, laws and regulations that steer how AI is developed, deployed and used, aiming for fairness, privacy, accountability and social benefit.

Why This Matters — Even for Tech-Savvy Regions Like Singapore

As someone already working in AI, data, and ML systems, you know first-hand the transformative potential of AI. But the new UNDP report is a sharp reminder that AI doesn’t automatically benefit everyone — unless we design and govern it inclusively. Wealthy, digitally advanced countries could surge ahead even further, while vulnerable populations risk being left behind.

For Southeast Asia (and beyond), the window to act is now: invest in infrastructure, build skills across communities, and steer AI deployment toward inclusive growth and resilience. That way, AI can become a force for narrowing — not widening — divides.


Source: The Next Great Divergence: Why AI May Widen Inequality Between Countries — UNDP and related coverage.