UN warns of financial productiveness crash as a consequence of AI job losses
The United Nations’ (UN) newest tackle know-how is that the distinctive characteristic of synthetic intelligence (AI) is its capacity to amplify human intelligence. Clever machines permit for simpler human and robotic collaboration which will spark a fifth industrial revolution. Nonetheless, there’s a threat this might result in job losses.
The UN’s Expertise and innovation report 2025 predicts {that a} new wave of technological transformation will reshape the financial system and society. The report warns there’s a threat that the usage of AI will change many employees whereas not creating sufficient new jobs, and can also widen job polarisation and improve earnings inequality.
It factors out that developed nations are extra possible than growing nations to face extra fast labour market changes and a rise in wage inequality. The report cites the UK for example of a rustic the place a major share of employment is in skilled and managerial occupations, that are extremely uncovered to AI augmentation. It notes that job losses can also happen in clerical assist and technician occupations as a consequence of AI-related automation.
Tech inequality
The report highlights that almost half of the occupations that might profit from augmentation face digital limitations. It additionally notes a major gender-related imbalance in automation, largely as a result of girls usually tend to carry out essentially the most uncovered jobs.
“The proportion of women-held jobs which are uncovered to automation might be as much as twice that of males,” it warned, including that the gender divide in digital expertise and entry to IT expertise might restrict the advantages of AI adoption for ladies, doubtlessly widening present inequalities.
Since AI can increase or displace labour, the UN notes that productiveness positive factors rely upon long-term structural changes within the labour market. Citing Organisation for Financial Cooperation and Growth (OECD) findings from 2024, the report stated: “If AI is designed and used primarily as a labour-substituting know-how, in the long run, the declining employment share in sectors which are extra AI intensive can diminish the general financial impact of productiveness positive factors.”
It said that employees who lose their jobs to AI could also be employed in sectors with decrease productiveness, which might end in job polarisation and widening earnings inequality.
The UN warned that whereas productiveness might improve in AI-intensive sectors, the combination productiveness impression may very well be restricted by slower productiveness progress in labour-intensive sectors.
The report advisable that governments promote human-complementary AI applied sciences via elevated analysis and growth funding, strategic public procurement and focused tax incentives. “Enhancing labour market alternatives and establishing clear profession growth pathways can mitigate the chance of mind drain,” it said.
Technological dominance
The UN additionally checked out the place AI developments are happening. The report notes that many of the main semiconductor firms are from the US and different developed economies, with the US having round one-third of the highest 500 supercomputers and greater than half of total computational efficiency, based mostly on the TOP500 2024 supercomputer efficiency benchmarks. China is ranked second, with 80 of the highest 500 supercomputers, though its whole computational efficiency is lower than one-tenth that of the US.
The UN warned that the majority growing nations have restricted capacities in AI {hardware} and infrastructure, which hinders their adoption and growth of AI. It stated this could increase considerations over provide chain vulnerabilities and the curiosity of governments to realize autonomy within the growth of applied sciences which are essential for advancing nationwide developmental objectives.
