AI-driven global divide escalating, according to WTO warning
In the rapidly evolving world of technology, the focus has shifted towards Artificial Intelligence (AI) and its impact on digital trade. However, the World Trade Organisation (WTO) warns that access to these advanced technologies remains extremely unequal, particularly for low-income countries.
This inequality could potentially undermine the competitiveness of economies that rely heavily on low-skilled and cheap labour. The potential for AI development is currently concentrated in a limited number of companies and economies, a situation that could further boost capital returns and exacerbate existing inequalities.
The use of AI technology strengthens the positions of capital-intensive and information-intensive production, which could lead to a shift in the global economic landscape.
On the other hand, some countries are taking proactive measures to promote AI development while addressing inequality. European Union member states like Poland and the Czech Republic, for instance, are competing for EU funding through programs such as InvestAI. South Africa conducts national AI readiness assessments and develops frameworks aligned with international standards, supported by government initiatives. Developed countries like Germany within the EU are combining state and private sector efforts for AI applications, such as in migration management.
On a global scale, the EU, USA, Canada, and Australia lead with integrated policies and international collaboration to foster AI development, with a focus on social inclusion and innovation capacity.
Recent reports by Reuters highlight the impact of AI on the job market. In July, it was announced that job platforms Glassdoor and Indeed planned to lay off 1,300 employees, replacing their functions with artificial intelligence. This trend is not unique to these platforms, as many American companies, including Meta (formerly known as Facebook) and Microsoft, have announced staff cuts and additional investments in AI to mitigate the effects of economic slowdown.
However, WTO analysts caution that the widespread adoption of AI could exacerbate inequality rather than reduce it. This raises concerns about the potential social and economic consequences of this technological shift.
In a separate development, Meta (Facebook) is recognised as extremist in Russia, and its activities are prohibited. This ban highlights the complexities and challenges posed by AI and digital trade in the international arena.
In conclusion, while AI and digital trade offer significant opportunities for economic growth and development, it is crucial to address the potential inequalities they could create. International cooperation, policy integration, and a focus on social inclusion are key to ensuring a fair and equitable digital future.
