Artificial intelligence could widen inequality between countries by increasing divides in economic performance, capabilities, and governance systems, according to a United Nations Development Programme report titled The Next Great Divergence: Why AI May Widen Inequality Between Countries, released on 2 December 2025. Whilst AI opens important avenues for development, countries begin this transition from highly uneven positions to capture benefits and manage risks. Without strong policy action, these gaps threaten to reverse the long trend of narrowing development inequalities.
For much of the last half-century, many lower-income countries gradually closed the gap with higher-income nations through advances in institutions, technology and trade, bringing significant improvements in health, education, and income. However, for the fourth consecutive year, inequality between Low HDI (Human Development Index) and Very High HDI countries are increasing – and the report warns that advances in AI technologies may further erode convergence gains. Whilst early dividends of AI flow to now advanced economies such as Singapore, Japan, and China, nations with weak connectivity, unreliable power, and limited technology skills are missing out, with about a quarter of the Asia-Pacific region lacking online access. Jobs held by women are nearly twice as exposed to automation, and youth employment is already declining in high-AI-exposure roles, especially for those aged 22–25, threatening early-career pathways.
AI adoption is happening in months rather than decades, and many countries lack the infrastructure, skills, and governance systems needed to capture AI's benefits whilst facing economic and social disruptions from the technology. Most gains from AI are likely to be reaped by wealthy nations unless steps are taken to use its power to help close gaps in access to basic needs and advanced know-how. The report underscores that without coordinated policy action, AI risks sparking a new era of divergence, widening development gaps that took decades to narrow.
Sources:
1. https://www.undp.org/asia-pacific/press-releases/ai-risks-sparking-new-era-divergence-development-gaps-between-countries-widen-undp-report-finds
2. https://www.aljazeera.com/news/2025/12/2/ai-threatens-to-widen-inequality-among-states-un?traffic_source=rss
3. https://abcnews.go.com/Technology/wireStory/ais-impact-worsen-gaps-worlds-rich-poor-report-128025674
4. https://www.undp.org/latin-america/press-releases/human-development-progress-slows-35-year-low-according-un-development-programme-report
5. https://www.euronews.com/next/2025/12/02/ai-race-is-faster-than-countries-can-adapt-threatening-greater-global-inequality-un-report
