AI for Human Development: The United Nations’ Study on the Role of Technology in Social Progress

Table of Contents

A recent United Nations report exploring the relationship between artificial intelligence and human development offers critical insights for entrepreneurs, investors, and strategic decision-makers. The message is clear: AI is much more than an emerging technology. It is a strategic lever to redefine growth, innovation, and inclusion on a global scale.

This calls for a shift in perspective — from viewing AI purely as a tool for efficiency to recognizing it as a driver of economic and social transformation. From education to healthcare, energy to agriculture, the sectors with the highest human impact now represent the greatest opportunities for innovation and investment.

Here are the key insights for those who want to help shape a future where humans and technology grow together:

1. The AI Market: Rapid Growth and Concentrated Power

The AI market is expanding at an astonishing pace, with massive investments flowing into new sectors and radically transforming economies, education systems, and healthcare. It’s projected that AI could boost global GDP by nearly 20% by 2034. The market is expected to grow from $189 billion in 2023 to $4.8 trillion by 2033.

However, the market remains highly concentrated:

  • US and China Dominance: Most large-scale AI models are developed by organizations based in the United States, followed by China and the UK. In 2024, the majority of global AI investment was concentrated in the U.S.

  • Supply Chain Concentration: The AI supply chain is dominated by a few players, especially in hardware and cloud infrastructure. NVIDIA captured 92% of data center revenues in 2023, while AWS and Azure control significant cloud computing shares. ChatGPT leads in AI applications, with 87% of monthly visits. This centralization is raising political concerns around competition.

  • High Resource Costs: AI development is resource-intensive. Between 60% and 95% of recent performance gains in AI stem from increased computing power. AI data centers consume vast amounts of energy and water.

2. Innovation Opportunities and Productivity Gains

AI is not just about automation — it’s a catalyst for innovation and human augmentation:

  • Augmentation over Automation: The study emphasizes the potential of AI to enhance human capabilities, rather than simply replacing them. Companies that focus on product innovation rather than process automation report higher sales, revenues, and employment. Nearly two-thirds of U.S. companies using AI are not targeting task replacement.

  • Accelerated R&D: AI is capable of accelerating the pace of technological discovery by identifying patterns in data that humans might miss, effectively acting as “an inventor of invention methods.”

  • Creative Possibilities: AI unlocks new ways of doing things, expanding human creativity and capability, especially when combined with expert knowledge.

  • Workforce Upskilling: AI can boost the performance of less-experienced workers. Younger employees are adopting AI tools faster, presenting a clear opportunity for investments in reskilling and workforce transformation.

3. High-Impact Sectors for Human Value Creation

AI presents major opportunities across multiple high-impact sectors:

  • Education and Healthcare: Nearly two-thirds of respondents in countries with varying Human Development Index (HDI) levels expect to use AI in education, healthcare, and work within a year. AI can personalize learning and medical care. It has already proven crucial in early diagnosis (e.g., breast cancer, leukemia) and epidemic surveillance, particularly in low-resource settings.

  • Personalized Services: AI enables large-scale, sensitive personalization of services — even in stigmatized or complex scenarios.

  • Access to Know-How: Beyond better data, AI enables smarter use of information, supporting industrial upgrades in low- and middle-income countries and democratizing scientific research.

  • Energy and Agriculture: In energy, AI can forecast markets, cut costs, and optimize grids, accelerating the shift to clean energy. In agriculture, it powers precision farming, improving resource efficiency and crop yields.

4. Development and Growth

AI is reshaping global power dynamics. Contrary to zero-sum narratives, the “AI race” doesn’t require someone to lose for others to win. There’s strong potential for international cooperation. Yet, disparities in access to computing power, data, and talent risk widening the gap between the Global North and South.

One major challenge is talent migration. Skilled AI professionals from countries like India, despite strong educational foundations, often seek opportunities abroad due to systemic limitations, causing a brain drain.

For lower-income nations, the challenge is twofold: traditional growth paths like manufacturing are slowing, while AI opens up new, agile, and inclusive development avenues. Investing in AI could foster not just tech innovation but also economic resilience and global equity.

5. Risk, Ethics, Regulation, and Opportunity

Today, investors must look beyond economic returns and consider the social, cultural, and regulatory implications of AI. A responsible approach to AI is not just a moral imperative — it’s a path to leadership and market differentiation.

  • Bias and Discrimination: AI systems can reflect and amplify societal inequalities. Biases built into models, based on developer perspectives, can worsen disparities.

  • Security and Privacy: There are growing concerns about data misuse, especially regarding consent and exploitation of vulnerable communities.

  • Hallucinations and Misinformation: AI can generate false or misleading content, posing risks of misuse, especially when users struggle to differentiate real from synthetic.

  • Regulation and Governance: Organizations like UNESCO and the OECD are working on ethical AI frameworks. Singapore, for instance, has developed a governance model balancing innovation, security, and accountability.

  • Opportunities in Responsible AI: Only about 2% of current AI research focuses on safety. There is a significant opportunity for investments in ethical, transparent, and fair AI solutions, such as auditing tools and publicly accessible infrastructure (open-source models, public datasets, shared computing).

6. New Standards and Collaboration

The study calls for a paradigm shift in how we assess AI’s effectiveness. Beyond performance and computing benchmarks, we must measure how AI contributes to human well-being, opportunity, and autonomy.

Achieving this requires broad collaboration. Governments, tech companies, academia, civil society, and international institutions must co-create standards that serve the collective good.

Public-private partnerships are especially crucial. They can transform research into practical solutions, bridge innovation gaps, and ensure AI benefits are distributed fairly and sustainably.

Our Commitment: Transparent, Responsible, Human-Centered AI

At Neodata, we believe AI should serve human development, not just technological progress. That’s why we adopt an ethical-by-design approach in every project phase — from data collection and modeling to impact analysis. We build data-driven solutions that are transparent, privacy-conscious, and genuinely useful, always keeping people, context, and shared value at the core. Because only conscious AI can create sustainable innovation.

+ posts

AI Evangelist and Marketing specialist for Neodata

Keep Your AI Knowledge
Up-to-Date

Subscribe to our newsletter for exclusive insights, cutting-edge trends, and practical tips on how to leverage AI to transform your business. No Spam, promised.

 

By signing up you agree to our privacy policy.