UNCTAD's Technology and Innovation Report 2025

1. The United Nations Conference on Trade and Development (UNCTAD) has released its Technology and Innovation Report 2025, focusing on the crucial role of Artificial Intelligence (AI) in shaping future economies.
2. The report emphasizes how AI can drive inclusive growth while highlighting the need to address the potential risks of deepening societal divides.

Key Findings from the Report:

1. AI Market Potential: AI is projected to have a $4.8 trillion global market value by 2033, showcasing its growing significance in global economic development.
2. Impact on Employment: AI could affect up to 40% of jobs worldwide, offering significant productivity gains but also raising concerns about automation-driven job displacement.
3. Market Concentration:
   1. 40% of global corporate Research and Development (R&D) spending is concentrated in just 100 firms, predominantly based in the US and China.
   2. The United States alone accounts for 70% of global private investment in AI, highlighting the dominance of a few countries in AI development.

Inclusive AI: Moving Forward

To ensure AI benefits all sectors of society, the report outlines strategies for promoting inclusive AI adoption:

1. AI Adoption in Developing Countries: For AI to benefit developing nations, solutions must be tailored to locally available digital infrastructure, and efforts should be made to lower skill barriers. Additionally, fostering international partnerships is crucial.
2. Worker-Centric Approach: Job workflows and tasks should be adapted to integrate AI effectively, ensuring that workers are not displaced but instead enhanced by AI capabilities.
3. Role of Governments: Governments are encouraged to assess national AI capacities across three main pillars: infrastructure, data, and skills, to build a sustainable and inclusive AI ecosystem.

India's Position in AI and Technology:

India has made significant strides in embracing frontier technologies. Here are some key insights related to India from the report:

1. Readiness for Frontier Technologies Index: India ranked 36th in the UNCTAD's 2024 Readiness for Frontier Technologies Index, reflecting its ongoing progress and areas for improvement in AI and digital technologies.
2. Talent Pool: India boasts a large developer pool with over 13 million developers on GitHub (as of 2023), indicating the country’s growing technical workforce.
3. Government Initiatives: The India AI Mission (2024) aims to create an inclusive AI ecosystem, focusing on the adoption and development of AI solutions that can benefit diverse sectors of the economy.
4. Case Study – Tata Steel: A successful example of AI implementation in India comes from Tata Steel, which has integrated around 250 machine learning systems into its production processes, significantly improving operational efficiency.

 

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