Artificial intelligence (AI) promises to transform economies, governance, and public services – yet, if unmanaged, it could also widen development gaps between countries, according to a new United Nations Development Programme (UNDP) report, The Next Great Divergence: Why AI May Widen Inequality Between Countries.
The report highlights that while AI offers unprecedented opportunities for development, countries start this transition from highly uneven positions. Without strong policy action, these gaps may grow, reversing decades of progress in narrowing global inequalities.
Asia and the Pacific, home to over 55% of the world’s population, is at the center of the AI revolution. The region hosts more than half of global AI users and is rapidly expanding its innovation footprint, from China’s rise to nearly 70% of global AI patents to over 3,100 newly funded AI companies across six economies. AI could boost annual GDP growth by around 2 percentage points and raise productivity by up to 5% in sectors such as health and finance, with ASEAN economies alone potentially adding nearly $1 trillion in GDP over the next decade.
Viet Nam is emerging as a standout example, with an ambitious national strategy to become a regional leader in AI by 2030 and rank among the top 50 countries globally in AI research and development. “Inclusive policies, targeted investments, and responsible AI governance are essential to ensuring that AI becomes a force for equitable development,” said UNDP Resident Representative in Viet Nam, Ramla Khalidi. “Viet Nam is well positioned to harness AI for sustainable and inclusive growth, provided it continues addressing challenges such as skills gaps, data quality, and digital inclusion for women, rural communities, and marginalized groups.”
UNDP Viet Nam’s Artificial Intelligence Landscape Assessment (AILA) report notes that the government has demonstrated strong political will, implementing policies and investments to accelerate digital transformation and AI adoption across key sectors. Nearly universal 4G coverage, ongoing 5G rollout, and improved e-government capabilities are supporting this progress.
However, risks remain. Millions of jobs, particularly for women and young people, are vulnerable to automation, while gaps in skills, data, and AI governance could limit potential benefits. Across the region, countries investing in AI infrastructure, skills, and governance are likely to gain the most, while others risk being left behind.
AI is also reshaping governance and public services. In Bangkok, the Traffy Fondue platform has processed nearly 600,000 citizen reports, enabling faster municipal responses. Singapore’s Moments of Life service has reduced paperwork for new parents from about 120 minutes to 15 minutes, while Beijing uses digital twins for urban planning and flood management. Viet Nam is piloting an AI-powered User Support platform to help citizens access 15 essential public services online, demonstrating AI’s potential to improve public administration.
Yet regulatory gaps persist. Only a few countries have comprehensive AI regulations, and by 2027, over 40% of global AI-related data breaches may result from misuse of generative AI, highlighting the urgent need for robust governance frameworks.
The UNDP report emphasizes that, with strategic planning, countries can turn these risks into opportunities, ensuring AI drives inclusive, sustainable development rather than widening global inequalities.
