Ha Noi, 2 Dec 2025 – Artificial intelligence (AI) has the potential to transform economies, governance, and public services – but unmanaged, it could also widen development gaps between countries, warns 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 opens important new avenues for development, countries begin this transition from highly uneven positions to capture benefits and manage risks. Without strong policy action, these gaps can grow, reversing decades of progress in narrowing development inequalities.

Asia and the Pacific region, home to over 55% of the world’s population, is at the center of the AI transition. The region now 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 lift annual GDP growth in the region by around 2 percentage points and raise productivity by up to 5% in sectors such as health and finance. ASEAN economies alone could see nearly $1 trillion in additional GDP over the next decade. 

Viet Nam stands out in the region for its ambitious national strategy to become a leader in artificial intelligence by 2030, aiming to be among the top three countries in Southeast Asia and the top 50 globally for 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.”

Insights from UNDP Viet Nam’s Artificial Intelligence Landscape Assessment (AILA) report show that the government has demonstrated strong political will, launching policies and investments to accelerate digital transformation and AI adoption across key sectors. Rapid expansion of digital infrastructure, including nearly universal 4G coverage, ongoing 5G rollout, and a significant rise in Viet Nam’s global e-government ranking, is supporting this progress. 

The report also notes potential risks caused by AI. Millions of jobs - particularly for women and young people—are exposed to automation, and gaps in skills, data, and AI governance could limit the benefits of AI. Across Asia and the Pacific, countries that invest in skills, computing power, and sound governance systems are likely to gain most from AI, while others risk falling behind.

Digital readiness varies significantly across the region. Countries such as Singapore, South Korea, and China are making substantial investments in AI infrastructure and skills, while others are still working to strengthen foundational digital access and literacy. Limited infrastructure, skills, computing power, and governance capacity constrain the potential benefits of AI while amplifying risks, including job displacement, data exclusion, and indirect impacts such as rising global energy and water demands from AI-intensive systems.

AI is also transforming governance and public services across the region. Bangkok’s Traffy Fondue platform has processed nearly 600,000 citizen reports, enabling faster responses. Singapore’s Moments of Life service has reduced paperwork for new parents from about 120 minutes to 15 minutes. In Beijing, digital twins support urban planning and flood management. An AI-Powered User Support platform is being piloted in Viet Nam to assist citizens in using 15 most essential public administrative services online. These examples show the potential of AI to enhance public administration and service delivery. 

Yet only a limited number of countries have comprehensive AI regulations, and by 2027, more than 40% of global AI-related data breaches may stem from misuse of generative AI, underscoring the need for robust governance frameworks. 

This report outlines how countries can turn these risks into a path for shared progress./.

MEDIA CONTACTS

Nguyen Viet Lan, UNDP Communications Lead, email: nguyen.viet.lan@undp.org, phone: 84-914436769