Understand how artificial intelligence is creating new gaps between rich and poor countries in Asia. Learn about digital divides, job displacement, and why inclusive AI development matters for everyone.
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Understanding the Growing Technology Gap and Why It Matters for Everyone
The rise of artificial intelligence is happening incredibly fast across Asia. Billions of people now use AI tools every day, but there is a critical problem: not everyone has equal access to these technologies or the ability to use them effectively. While wealthy countries like Singapore, China, and South Korea are racing ahead with cutting-edge AI systems, many poorer nations in Asia lack even basic digital infrastructure. This inequality threatens to deepen the divide between rich and poor countries in ways we have never seen before.
The United Nations Development Programme recently published a major warning. The agency found that if governments do not act carefully, AI could create what experts call “the Next Great Divergence,” where wealthy nations gain enormous economic benefits while struggling nations fall further behind. Think of it like the Industrial Revolution of the 19th century, when factories and machines created a small group of wealthy nations and left others struggling in poverty. AI is happening much faster and could repeat this pattern.
The Massive Growth of AI Investment in Asia
AI investment across Asia has become enormous. During just the first half of 2024, companies committed more than 30 billion dollars to building AI data centres in Singapore, Thailand, and Malaysia. Venture capital funding for AI startups in Asia-Pacific exceeded 8.2 billion dollars in 2024 alone. China leads this growth, investing an estimated 15.6 billion dollars in AI development, while Japan has poured over 2 billion dollars into AI partnerships.
However, this money is not spreading evenly across the region. China alone holds nearly 70 percent of all global AI patents, while more than 3,100 newly funded AI companies are concentrated in just six regional economies. This means the benefits of AI are being captured by a very small group of wealthy, technologically advanced countries. For every 100 people in wealthy countries like Singapore, 82 have internet access, but in Cambodia only 9 people out of 100 are online. This digital divide makes it nearly impossible for poorer nations to catch up.
Why Some Countries Are Prepared and Others Are Not
The core issue comes down to three main ingredients that AI requires to succeed: computing power, skilled workers, and strong government systems. Rich countries have all three. They have invested heavily in fast internet networks, trained thousands of engineers and developers, and created clear rules for how AI should be used.
Poor countries lack these basics. About 40 percent of people living in rural areas across Asia do not have internet access at all. In South Asia, women are up to 40 percent less likely than men to own a smartphone, which cuts them off from digital tools. Without internet, without computers, and without trained people, these countries cannot build AI companies or benefit from AI systems.
The difference is stark. Afghanistan’s average income is 200 times lower than Singapore’s. This income gap explains why AI is only growing in wealthy countries. If a country is struggling to provide clean water and electricity, it cannot afford to invest billions of dollars in AI research and development. As a result, the gap between advanced and developing nations is growing wider every single day.
Key Factors Behind Asia’s Growing AI Divide
| Theme | What’s Happening | Why It Matters |
|---|---|---|
| Uneven AI Growth | Billions are invested in AI hubs like Singapore, China, and South Korea. Poorer nations lack basic digital infrastructure. | Wealthy countries capture most economic benefits while others fall behind. |
| Infrastructure Gap | Many rural areas still lack reliable internet or computers. | Countries without connectivity cannot build or use AI tools. |
| Workforce Readiness | Rich nations train engineers and adopt AI skills. In poorer nations, only a small share receives training. | Workers without skills risk losing jobs without alternatives. |
| Gender Inequality | Women are concentrated in routine jobs and have limited access to digital training. | Women face higher job losses and fewer chances to enter AI roles. |
| Economic Impact | AI could add nearly one trillion dollars to Asia-Pacific. | Most gains will go to already-wealthy economies unless action is taken. |
How This Affects Normal People and Their Jobs
The real danger is what happens to workers. AI is not just technology locked away in laboratories. It is already replacing human workers in factories, call centres, and offices. The UN estimates that millions of jobs across Asia could disappear as AI becomes more powerful.
The problem is that different countries will experience this differently. In wealthy countries, when workers lose jobs to AI, governments can help them learn new skills. In poor countries, there is no safety net. A factory worker in Bangladesh who loses their job to a robot cannot easily access training programs to learn new skills. They simply lose their income and their family struggles.
Young workers and entry-level employees face the biggest threat. Workers aged 22 to 25 are especially vulnerable because they are just starting their careers in jobs that AI can easily do. Meanwhile, older workers with experience and education are more likely to transition into positions where they work alongside AI rather than compete with it.
The Special Impact on Women’s Opportunities
Women face a particularly severe threat from AI in Asia. Jobs held by women are nearly twice as exposed to automation compared to jobs held by men. Why? Because women are concentrated in certain industries where routine work is common.
In Bangladesh, the garment industry which employs millions of women could be disrupted by AI-powered robots that can cut and sew cloth faster than humans. In the Philippines, India, and Bangladesh, huge numbers of women work in call centres handling customer service. Now AI systems can answer customer questions automatically, eliminating many of these jobs. In Thailand, women represented 91 percent of manufacturing job losses during recent economic disruptions.
This is not because women cannot do technical work. The issue is that women are underrepresented in technical leadership roles where workers can guide and manage AI systems. Women hold only 30 percent of AI professional roles globally and just 8 percent of senior technical positions in Southeast Asia. This means fewer women are shaping how AI is developed or deciding how it should be used. Without diverse perspectives in AI design, the technology risks reinforcing existing biases and making life harder for women.
Additionally, women have less access to digital skills training. In many Southeast Asian countries, female enrolment in digital skills courses is only about half that of males, according to research from the Asian Development Bank. This skills gap means that when jobs change, women have fewer options to transition into new opportunities.
Income Inequality Determines Who Benefits
Here is another uncomfortable truth: richer people benefit from AI while poorer people suffer from it. Wealthy individuals can afford to buy AI products and services. They can pay for education to understand new technology. They can move to cities with better job opportunities. Poor people cannot do any of this.
In wealthy companies and countries, AI helps workers become more productive and earn higher salaries. A software engineer at a tech company in Singapore can use AI tools to write code faster and complete more projects. Their employer values this productivity and pays them more. But a garment factory worker in Cambodia cannot use AI this way. Instead, AI is a threat to their job.
The same pattern repeats across sectors. Doctors in rich hospitals use AI to diagnose diseases faster and save more lives. Patients in poor rural areas do not have access to these AI diagnostic systems at all. Farmers in advanced countries use AI to predict weather and optimize crops. Farmers in poor countries still rely on traditional methods and lack the internet to even access these tools.
This creates a vicious cycle. Countries with more wealth invest in AI, which makes them more productive and wealthier. Countries with less wealth cannot invest in AI, fall further behind, and become relatively poorer. The gap grows exponentially rather than closing slowly.
Understanding the Real Statistics Behind the Problem
The numbers tell a compelling story. Across Asia and the Pacific, AI could potentially add nearly one trillion dollars to the economy over the next decade and boost productivity by up to 5 percent in critical sectors like healthcare and finance. That is an enormous opportunity. Yet most of this benefit will flow to already-wealthy countries and wealthy people within those countries.
Consider internet access. While 96 percent of Asia-Pacific’s 4.3 billion people live in areas with mobile broadband network coverage, only about one-third actually use the internet in ways that improve their livelihoods and economic growth. This gap between having access and actually using the internet productively is crucial. Without digital literacy and practical skills, even free internet does not help people benefit from AI.
The skills shortage is severe. Only 15 percent of people surveyed across Asia-Pacific have engaged in any AI training programs, while more than half do not even know these programs exist. Among younger workers, only 1 in 5 have received AI training, while older workers aged 50 to 65 are far more skeptical of AI’s trustworthiness. This awareness gap means most workers cannot prepare themselves for an AI-driven future because they do not know where to find training.
Why Inclusive AI Development Matters
The good news is that AI inequality is not inevitable. Governments, businesses, and international organizations are recognizing the danger and taking action. However, change must happen quickly.
Inclusive AI development means ensuring that technology benefits everyone, not just wealthy nations and wealthy people. It means investing in digital infrastructure so that poor rural areas have reliable internet. It means creating affordable training programs so that women, young people, and low-income workers can learn AI skills. It means making sure that when countries develop AI rules and regulations, they listen to voices from developing nations.
Some promising initiatives are emerging. The UN Development Programme, Google, and other organizations have launched the AI Opportunity Fund to train over 720,000 workers across Asia-Pacific in AI skills. The fund specifically targets vulnerable groups including migrant workers, women, people with disabilities, and rural entrepreneurs. This targeted approach recognizes that one-size-fits-all training will not work when countries have such different needs.
ASEAN nations are developing a unified approach to AI governance that balances innovation with protection for workers and vulnerable communities. India’s strong digital infrastructure and expanding AI research ecosystem position it to help shape an inclusive AI transition across the region.
What Should Happen Next
Preventing “the Next Great Divergence” requires action across multiple fronts. First, governments must invest in foundational digital infrastructure. If villages do not have electricity or internet, they cannot participate in the AI economy no matter how good training programs are.
Second, countries need to invest heavily in education and reskilling. When AI eliminates jobs, workers must have access to affordable, high-quality training to learn new skills. This training should be available in local languages and tailored to each country’s specific job markets. Women deserve special attention because they face unique barriers to accessing technical training.
Third, governments should strengthen worker protections and social safety nets. During this AI transition, many people will lose jobs through no fault of their own. Societies that support workers with income protection, healthcare, and job placement assistance will manage this change better than countries that leave workers to fend for themselves.
Fourth, AI development must include diverse perspectives from around the world. If only wealthy Western and Chinese companies design AI systems, those systems will reflect the values and interests of only those cultures. To create fair, trustworthy AI, developing countries must participate in decisions about how AI is developed and governed.
Conclusion
Artificial intelligence is one of the most powerful technologies ever created. Its potential to improve healthcare, education, agriculture, and living standards across Asia is genuine and enormous. However, without careful planning and government action, AI will make inequality worse rather than better. Wealthy countries and wealthy people will become richer while poor countries and poor workers fall further behind.
The Asia-Pacific region is the ultimate testing ground for this challenge. It is home to 55 percent of the world’s population and already experiences more inequality than any other region on Earth. The decisions governments make about AI development in the next few years will determine whether this technology becomes a tool for shared prosperity or a new source of division.
The path forward is clear. Invest in people, build digital infrastructure in poor areas, include diverse voices in AI decisions, and create strong protections for workers. With these steps, Asia-Pacific can ensure that AI benefits everyone, not just the wealthy few.
Source: AI boom could widen inequality worldwide, with Asia most at risk: UN agency report & How Artificial Intelligence Will Affect Asia’s Economies
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