Harnessing Generative AI: Opportunities and Challenges Ahead

Generative AI (GenAI), the technology behind tools that can create text, images, music, and even complex designs, is rapidly transforming industries across the globe. GenAI has the potential to revolutionize various industries, from entertainment to healthcare, by automating creative processes and enhancing productivity. However, its rapid development also raises important questions about its impact on jobs, economic inequality, and global access to this technology.

In July, eTrade for all partners zeroed in on the fast-evolving world Generative AI (GenAI). In this section of our newsletter, we spotlight three publications that delve into AI’s transformative potential and the challenges it presents across different regions and industries.

The ILO and World Bank Group released a paper on GenAI’s impact on jobs and livelihoods in Latin America and the Caribbean. While GenAI promises to boost productivity, the report warns that digital access and infrastructure gaps could limit these benefits.

A joint report by the ILO and the UN Office of the Secretary-General’s Envoy on Technology, cautions that without effective global cooperation, the AI revolution could widen the divide between high and low-income countries.

Lastly, WIPO released a comprehensive patent landscape report on Generative AI, shedding light on the technology’s far-reaching implications beyond text generation, with the potential to disrupt numerous economic, social, and cultural sectors.

Discover the main findings here below.

Buffer or Bottleneck? Employment Exposure to Generative AI and the Digital Divide in Latin America

ILO/WBG 

A new paper from the International Labour Organization and the World Bank Group indicates that Generative AI could have transformative effects on jobs and livelihoods in Latin America and the Caribbean. Nonetheless, gaps in digital infrastructure and other inequalities could hinder the potential impacts of Generative AI in the region.

Key findings:  

• About 2-5% of jobs are at risk of full automation due to the current capabilities of Generative AI.
• Up to half of the jobs that could improve productivity with Generative AI – about 17 million jobs – are hindered by gaps in digital access and infrastructure.
• Governments should implement policies to protect jobs, enhance productivity, and maximize the transformative potential of Generative AI to promote more inclusive growth and sustainable development.

The study indicates that GenAI automation may pose greater risks to women, as well as to urban, younger, and educated workers in formal sectors, potentially exacerbating regional economic inequalities and increasing levels of informality.

Key recommendations: 

The research recommends several key actions in the region and the need for a collaborative approach to fully harness GenAI’s potential while mitigating associated risks:

• Implement lifelong learning programmes to mitigate job losses and enhance productivity.
• Strengthen workers’ foundational skills to boost productivity and creativity with GenAI.
• Enhance social protection systems to stabilize transitions and address gender gaps.
• Improve digital infrastructure and incentivise the adoption of digital technologies.
• Help workers in the informal sector transition to the formal sector to improve their chances of benefiting from GenAI.

Read about GenAI in LAC

Mind the AI Divide: Shaping a Global Perspective on the Future of Work

ILO/UN 

A new report from the ILO and the UN Office of the Secretary General’s Envoy on Technology, finds that AI is revolutionizing industries worldwide, offering tremendous opportunities for innovation and productivity. However, uneven rates of investment, adoption, and use are also exacerbating economic and social inequalities.

This emerging “AI divide” means that high-income nations disproportionately benefit from AI advancements, while low- and medium-income countries, particularly in Africa, lag behind.

Key recommendations:  

The report proposed three policy pillars: strengthened international cooperation, building national capacity, and addressing AI in the world of work. This includes:

• Enhancing Digital Infrastructure: Developing countries need robust digital infrastructure to support AI adoption. This includes access to electricity, broadband, and modern communication technologies.
• Promoting Technology Transfer: High-income countries should assist in transferring AI technologies and knowledge to developing nations, fostering a collaborative environment for technological advancement.
• Building AI Skills: Investment in education and training is crucial to equip the workforce with necessary AI skills. This will enable workers to adapt to and benefit from AI-driven changes.
• Encouraging Social Dialogue: Effective integration of AI in workplaces requires social dialogue to ensure that technological advancements respect workers’ rights and improve job quality.

Read Mind the AI Divide

Patent Landscape Report – Generative Artificial Intelligence (GenAI)

WIPO 

A new WIPO patent landscape report on Generative AI, published in July, offers a detailed overview of the current patent landscape for GenAI. Based on original analysis of patent and scientific data, the report provides the latest trends and a comprehensive, up-to-date understanding of the GenAI patent environment. It also offers insights into future applications and potential impacts of GenAI. The report further explores patents related to the various modes, models, and industrial applications of GenAI.

Key findings: 

• 54,000 GenAI-related inventions (patent families) were filed and more than 75,000 scientific publications published between 2014 and 2023.
• The growth is rapid, with the number of GenAI patents increasing eightfold since the 2017 introduction of the deep neural network architecture behind the Large Language Models that have become synonymous with GenAI.
• In 2023 alone over 25% of all GenAI patents globally were published, and over 45% of all GenAI scientific papers were published.
• The top five inventor locations are China (38,210 inventions), US (6,276 inventions), Republic of Korea (4,155 inventions), Japan (3,409) and India (1,350)
• In the future, GenAI can help design new molecules, expediting drug development. It can automate tasks in document management and publishing, be increasingly used in retail assistance systems and customer service chatbots and enable new product design and optimization, including in public transportation systems and autonomous driving.

Read the Patent Landscape Report – Generative Artificial Intelligence (GenAI)

Related news:

• The UN Secretary-General highlighted the unchecked rise of digital technologies, particularly AI, as one of the two looming existential threats that need urgent collective action. The Secretary-General expressed hope that the upcoming Summit of the Future will be a turning point in renewing global unity and addressing the existential threats facing humanity.
• WIPO published a toolkit for the exchange of best practices in developing sub-national innovation indices using the Global Innovation Index (GII) framework: Enabling Innovation Measurement at the Sub-National Level
• ITU announced the dates for the next AI for Good Global summit – 8-11 July 2025. The free registration will open in early 2025, when the topics will be revealed. Stay tuned at Summit 25 – AI for Good
• UNIDO inaugurated the new Global Alliance on AI for Industry and Manufacturing Centre of Excellence (AIM Global CoE) at the World Artificial Intelligence Conference (WAIC) 2024 held in Shanghai, China. Shanghai Municipality and MIIT launch AIM Global Centre of Excellence at World AI Conference 2024