Ai Market Projected To Hit 4 8 Trillion By 2033 Emerging As Unctad

Bonisiwe Shabane

-Dec 28, 2025, 2:12 PM

ai market projected to hit 4 8 trillion by 2033 emerging as unctad

Artificial intelligence (AI) is fast becoming the defining technology of our time. A new UN Trade and Development (UNCTAD) report projects the global AI market will soar from $189 billion in 2023 to $4.8 trillion by 2033 – a 25-fold increase in just a decade. By then, AI could quadruple its share of the global frontier technology market, rising from 7% to 29% and emerging as the sector’s dominant force. But AI’s rapid growth risks widening global divides. Development is highly concentrated, with advanced and large economies benefiting from a deeper talent pool of workers with the needed skills. In 2022, just 100 companies – mainly in the United States and China – accounted for 40% of global AI research and development (R&D).

Combined, the two countries hold 60% of all AI patents and produce a third of global AI publications. AI is already reshaping industries – from content creation and product design to automated coding and customer service. Artificial intelligence is projected to reach $4.8 trillion in market value by 2033, but the technology's benefits remain highly concentrated, according to the U.N. Trade and Development agency. In a report released on Thursday, UNCTAD said the AI market cap would roughly equate to the size of Germany's economy, with the technology offering productivity gains and driving digital transformation. However, the agency also raised concerns about automation and job displacement, warning that AI could affect 40% of jobs worldwide.

On top of that, AI is not inherently inclusive, meaning the economic gains from the tech remain "highly concentrated," the report added. "The benefits of AI-driven automation often favour capital over labour, which could widen inequality and reduce the competitive advantage of low-cost labour in developing economies," it said. The potential for AI to cause unemployment and inequality is a long-standing concern, with the IMF making similar warnings over a year ago. In January, The World Economic Forum released findings that as many as 41% of employers were planning on downsizing their staff in areas where AI could replicate them. The artificial intelligence (AI) industry is poised for significant growth in the years ahead. According to a new UN Trade and Development (UNCTAD) report1, the global AI market could be set to grow from $189 billion in 2023 to $4.8 trillion by 2033 – a 25-fold increase in...

In this post, we are going to look at some potential implications of this projected industry growth. We’ll also highlight a few companies that are spearheading the AI revolution today. For many of us, artificial intelligence is already reshaping the way we work. From content creation to product design, the technology is augmenting human capabilities and driving innovation. Looking ahead, we can expect to see AI used across far more industries. According to UNCTAD, over a quarter (27%) of jobs in advanced economies could be enhanced by artificial intelligence, boosting productivity significantly.It’s worth pointing out that AI enhancement isn’t just about doing things faster; it’s...

The beauty of this technology is that it’s able to handle complex data analysis, identify hidden patterns, and generate novel solutions. So, it has the potential to advance a range of industries. From healthcare to financial services, it could lead to products and services that were previously unimaginable.Of course, while AI has the potential to create new opportunities, it’s also raising concerns about job displacement. UNCTAD states that up to one third (33%) of jobs in advanced economies are at risk of automation while nearly a quarter of jobs (24%) are at risk in emerging economies. So, governments will need to invest in reskilling, upskilling, and workforce adaptation. This will help to ensure that AI enhances employment opportunities rather than eliminates them.

Note: Data from 125 countries in panel (a) and from 59 countries in panel (b); middle-income countries are the average of upper middle-income countries and lower middle-income countries, weighted by the number of countries... Another risk is that developing countries – which often lack the tech prowess of advanced countries – could be left behind as AI advances. UNCTAD notes in its report that in 2022, the US and China held 60% of all AI patents. To compete in an AI-driven world, developing countries will need to rethink industrial policies, shifting the focus towards technology and innovation. They will also need to invest in education and digital infrastructure to build skilled workforces and ensure widespread access to the benefits of AI.Overall, however, the technology has enormous potential. While concerns about job displacement are valid, AI could drive significant productivity gains across the global economy over the next decade.

Home | Updates | UNCTAD report urges inclusive AI development to avoid global divide AI’s rise could reshape global jobs – but leave many behind, the report warns. The UN Conference on Trade and Development (UNCTAD) has released its Technology and Innovation Report 2025, highlighting the transformative potential of artificial intelligence (AI) while warning of significant risks related to inequality and exclusion. The report projects that the AI market will reach a staggering $4.8 trillion by 2033, comparable to Germany’s economy, but emphasises that access to AI infrastructure and expertise remains concentrated in a few developed... UNCTAD calls for immediate action to ensure AI benefits are equitably distributed: UNCTAD Secretary-General Rebeca Grynspan stressed that strategic investments, inclusive policies, and global collaboration are essential for ensuring that AI drives sustainable development rather than exacerbating existing inequalities

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. By United Nations Conference on Trade and Development Apr 8, 2025 Artificial intelligence (AI) is fast becoming the defining technology of the time. A new UN Trade and Development (UNCTAD) report projects the global AI market will soar from $189 billion in 2023 to $4.8 trillion by 2033 – a 25-fold increase in just a decade. By then, AI could quadruple its share of the global frontier technology market, rising from 7% to 29% and emerging as the sector’s dominant force. But AI’s rapid growth risks widening global divides.

Development is highly concentrated, with advanced and large economies benefiting from a deeper talent pool of workers with the needed skills. In 2022, just 100 companies – mainly in the United States and China – accounted for 40% of global research and development (R&D). Combined, the two countries hold 60% of all AI patents and produce a third of global AI publications. The United Nations (UN) has projected that the global artificial intelligence (AI) market could reach $4.8 trillion by 2033, which is equivalent to the size of Germany’s economy, raising concerns regarding the potential impact... According to a new report from the UN Conference on Trade and Development (UNCTAD), nearly half of jobs globally could be affected by the rapid advancement of AI. While AI is viewed as a transformative force capable of driving economic growth and creating opportunities, the report warns that this technology may also exacerbate existing inequalities.

UNCTAD highlighted that AI could impact up to 40 percent of jobs globally, offering productivity gains but also raising significant concerns about automation and job displacement. Historically, previous waves of technological advancements have primarily affected blue-collar jobs. However, UNCTAD noted that AI is poised to impact knowledge-intensive sectors the most, making advanced economies particularly vulnerable. These economies, while better equipped to leverage the benefits of AI, will face challenges in managing the widespread effects on employment. The report also cautioned that the benefits of AI-driven automation often favor capital over labor, which could deepen inequalities. The displacement of low-cost labor in developing countries could diminish their competitive advantage, further widening the gap between developed and developing economies.

In her statement, UNCTAD Secretary-General Rebeca Grynspan emphasized the importance of placing people at the center of AI development. She urged stronger international cooperation to focus on “people-first” policies and enable countries to co-create a global AI framework that fosters inclusive economic growth. “History has shown that while technological progress drives economic growth, it does not, on its own, ensure equitable income distribution or promote inclusive human development,” Grynspan stated. The UNCTAD report also revealed that in 2023, frontier technologies such as AI, blockchain, 5G, and 3D printing represented a $2.5 trillion market. This figure is expected to grow sixfold, reaching $16.4 trillion by 2033, with AI emerging as the dominant technology in this sector. By 2033, AI is expected to constitute a $4.8 trillion market.

Ai Market Projected To Hit 4 8 Trillion By 2033 Emerging As Unctad

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