ILO and UN warn AI revolution can widen global productivity inequality without cooperation

The International Labour Organisation (ILO) and the United Nation (UN) Office of the Secretary General’s Envoy on Technology have warned that without international action, the AI revolution could further widen the gap between high and low-income countries, particularly in terms of productivity.

This is based on a recently released joint-report from the two organisations, named “Mind the AI divide: Shaping a global perspective on the future of work.”

The report found that while AI is revolutionising many industries worldwide, offering numerous opportunities for innovation and productivity, it is also increasing economic and social inequalities due to uneven rates of investment, adoption, and use.

While high-income nations benefit from AI advancements, low- and medium-income ones end up lagging behind.

In their foreword in the report, UN Secretary General’s Envoy on Technology Amandeep Singh Gill and ILO Director General Gilbert F. Houngbo said that it is critical to understand the potential for AI to affect labour demand and transform occupations.

“It is at the workplace where the potential for productivity gains and improved working conditions for the benefit of workers, their families, and societies at large, can be realised,” they said.

However, they remarked that such benefits will not happen on their own and will only take place should the right conditions be in place, “including the availability of digital infrastructure and skills, but also a culture of social dialogue that fosters a positive integration of technology.”

The pair commented that in order to promote inclusive growth, there need to be proactive strategies that support AI development in countries “on the wrong side of the AI divide,” including enhancements to digital infrastructure, promoting technology transfer, building AI skills, and also ensuring all jobs along the AI value chain are “of good quality and improve the lives of working people.”

The report outlined that annually, more than $300 billion (€272.2 billion) is spent globally on technology to enhance computing capacity, yet these investments are unevenly spread. They are mainly focused on higher-income nations, leading to a disparity in access to infrastructure and skills development. This puts developing countries and their homegrown start-ups at a severe disadvantage.

As previously indicated by Mr Singh Gill and Mr Houngbo, the ILO and UN proposed three policy pillars aimed at tackling these issues, namely strengthening international cooperation, building national capacity, and addressing AI in the world of work.

In fact, the report then proposed four key areas that enterprises and nations as a whole need to work on to minimise this digital divide.

Enhancing digital infrastructure

Firstly, the report stated that developing countries need to have robust digital infrastructure to support AI adoption.

This includes access to electricity, broadband, and modern communication technologies.

Promoting technology transfer

The report added that high-income countries need to assist in transferring AI technologies and knowledge to developing nations.

It affirmed that this collaborative environment will allow for greater technological advancement.

Building AI skills

The ILO and UN also pointed towards increased investment in education and training as crucial to equip the workforce with necessary AI skills.

The report stated that this will allow workers to adapt to and benefit from AI-driven changes.

Encouraging social dialogue

The report added that effective integration of AI in workplaces also necessitates social dialogue.

This will “ensure that technological advancements respect workers’ rights and improve job quality,” it highlighted.