Technology and Innovation Report 2025: Inclusive Artificial Intelligence for Development
The Technology and Innovation Report 2025 from the United Nations Conference on Trade and Development (UNCTAD) examines the complex landscape of artificial intelligence (AI). The report aims to help policymakers design science, technology and innovation (STI) policies that promote inclusive technological progress. While AI has the potential to accelerate progress towards the Sustainable Development Goals, its uneven distribution and lack of ethical oversight could widen existing inequalities. The report identifies three key leverage points — infrastructure, data, and skills — to assess a country’s readiness for AI and guide policy.
Key Insights:
- Frontier technologies, including AI, had a market size of $2.5 trillion in 2023. This is estimated to grow sixfold to $16.4 trillion by 2033.
- By 2033, AI is projected to have the largest market share of these technologies, reaching around $4.8 trillion and accounting for 30% of the total market.
- The market power, research and development (R&D) investment, and knowledge creation in frontier technologies are dominated by a few large tech companies from developed countries.
- Only 100 companies are responsible for over 40% of the world’s business investment in R&D.
- China and the United States dominate knowledge generation in frontier technologies, with roughly a third of peer-reviewed articles and two-thirds of patents.
- From 2000-2023, China and the United States were responsible for about one-third of global AI publications and 60% of patents.
- Most AI policies have been developed by developed countries.
- Case studies highlight how AI can be used in agriculture for pest control, yield prediction and precision irrigation.
- In manufacturing, AI is used for production automation, predictive maintenance and smart factories.
- In healthcare, AI can improve diagnoses, extend coverage and help with pandemic management.
- A Frontier Technologies Readiness Index for 170 economies places the United States, Sweden, and the United Kingdom at the top in 2024.
- The report uses indicators like internet users, high-skill employment, scientific publications and patents to measure readiness.
- Developing countries like Brazil, China, India and the Philippines are outperforming in technology readiness.
- There are significant disparities in countries’ capacity to adopt, adapt, and develop AI.
- There is a risk of deskilling and dissatisfaction, particularly for highly educated workers in developing countries who are relegated to low-skill tasks like data annotation and content moderation.
- Global AI governance is fragmented and largely driven by G7 members.
- International cooperation is needed for infrastructure, data and skills, including developing digital public infrastructure for AI and strengthening capacity-building and research collaboration.
- Countries can support open data initiatives to facilitate access, integration and collaboration.
- It is crucial for policymakers to balance fostering innovation with ensuring public safety and trust, especially concerning small and medium-sized enterprises (SMEs).
- International cooperation can help shift the focus from technology to people, co-creating a global AI framework that prioritizes shared prosperity.
Conclusion
The report concludes that AI, as a general-purpose technology offers significant opportunities for economic growth and sustainable development. However, its current concentration in a few countries and companies risks widening global inequalities. Governments must implement strategic policies that focus on building infrastructure, data and skills to harness AI’s benefits while mitigating risks. Ultimately, the report emphasizes that achieving an inclusive and equitable AI future requires a worker-centric approach and robust international cooperation to guide its development and ensure it serves the public good.
You can check out the full report here.