AI Could Impact 40% of Global Jobs, Pushing Global Regulatory Changes
UN Trade and Development’s (UNCTAD) Technology and Innovation Report 2025 predicts that the global artificial intelligence market will reach $4.8 trillion by 2033, significantly transforming economies and also posing risks of greater inequality.
HR Policy Global’s Take: This change will impact up to 40% of global jobs, requiring proactive labor and AI Governance policies by governments. To learn more, join us at our upcoming webinar Navigating AI Implementation in the EU: Key Considerations for Global Employers.
Global inequalities on AI: AI infrastructure and expertise are concentrated primarily in a few economies. About 100 firms, predominantly in the US and China, account for 40% of global corporate R&D spending. Tech giants like Nvidia boast a market value of around $3 trillion, rivaling the GDP of the entire African continent. This market dominance, both nationally and corporately, threatens to widen technological divides and risks leaving many developing nations without the benefits of AI.
AI could impact 40% of jobs worldwide, according to the report. AI-driven automation often benefits capital more than labor, potentially widening inequality and reducing the competitive edge of low-cost labor in countries. However, AI doesn't just replace jobs; it also creates new industries and empowers workers. Investing in reskilling, upskilling, and workforce adaptation is crucial to ensure AI enhances employment opportunities rather than eliminating them.
Changing regulatory environment: AI is reshaping the global economic landscape, yet 118 countries, mainly in the Global South, have been left out of major AI governance discussions. In contrast, countries in North America, Europe, and Asia are actively regulating AI use, significantly impacting global employers.
The EU's Artificial Intelligence Act (EU AI Act) will profoundly affect employers and HR professionals who use or plan to use AI systems for operations, recruitment, performance evaluation, talent management, and workforce monitoring. Notably, this Act will influence organizations not only within the EU (and possibly the EEA) Member States but also those outside its borders, due to its extraterritorial reach. Here are some key features:
The EU AI Act prohibits AI practices posing unacceptable risks, such as using AI to infer emotions in the workplace, with few exceptions. It also bans AI systems that manipulate, deceive, exploit vulnerabilities, or categorize people based on biometric data to infer race or union membership.
High-risk AI systems, including those used in employment for recruitment, decision-making, task allocation, or monitoring, face strict obligations. These systems cover a broad range of work relationships, including platform workers and consultants.
The Act imposes transparency obligations for AI systems, ensuring users understand their nature and purpose, especially for systems interacting with people, like chatbots and generative AI.
Wenchao Dong
Senior Director and Leader, HR Policy Global, HR Policy Association
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