UN AI Report: Global North–South AI Divide and India’s AI Strategy

3 Jul 2026

GS III: Science and Technology- Developments and their Applications and Effects in Everyday Life.

Context: The Preliminary Report of the UN Independent International Scientific Panel on Artificial Intelligence (AI) highlights the growing divide between the Global North and the Global South in the development, deployment, and governance of Artificial Intelligence.

The report argues that AI has become not only a technological revolution but also a strategic geopolitical asset.

What is Artificial Intelligence (AI)?

Artificial Intelligence (AI) refers to the ability of machines and computer systems to perform tasks that normally require human intelligence, such as:

Learning from data
Problem-solving
Decision-making
Language understanding
Image recognition
Content generation

AI is widely regarded as the most transformative technology of the 21st century.

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Major Finding of the UN Report

Growing AI Divide Between Global North and Global South

The report highlights a widening technological and economic gap.

Global North

Developed countries such as the United States and European nations.
Possess advanced AI research infrastructure.
Own large AI companies.
Control computing power and AI models.
Shape global AI standards.

Global South

Developing and least-developed countries.
Limited investment capacity.
Lack advanced computing infrastructure.
Face shortages of AI talent.
Depend heavily on foreign AI technologies.

Thus, AI is becoming another source of global inequality.

Why is AI Development Concentrated in a Few Countries?

Developing frontier AI models requires enormous resources.

Barriers to Advanced AI Development

Massive Financial Investment
- Advanced AI development requires billions of dollars in investment.
- Demands sustained research and development (R&D) and long-term capital.
- Only a handful of firms and countries possess the financial capacity to support such large-scale investments.
High-End Computing Infrastructure
- AI models require powerful GPUs, supercomputers, and advanced computing clusters.
- Depend on large data centres and robust cloud infrastructure.
- These facilities consume enormous amounts of electricity, making AI development highly resource-intensive.
Highly Skilled Human Resources
- Advanced AI relies on AI researchers, machine learning engineers, data scientists, and computer scientists.
- Continuous innovation requires a strong ecosystem of research institutions and industry.
- Such high-end talent remains concentrated in a few countries.
Availability of Large Datasets
- Modern AI systems require massive volumes of high-quality data for training and improvement.
- Depend on continuous data collection, storage, and processing capabilities.
- Countries with weak digital infrastructure face difficulties in building globally competitive AI systems.

Challenges Before Developing Countries

AI Dilemma for Developing Countries

Option 1: Invest Heavily in Domestic AI

Requires diverting scarce resources from infrastructure, healthcare, education, and poverty alleviation.
Large AI investments may slow broader socio-economic development.
Poses difficult fiscal and developmental trade-offs.

Option 2: Depend on Foreign AI Providers

Rely on AI technologies developed by foreign companies.
Leads to technological dependence and reduced domestic innovation.
Limits policy autonomy and requires acceptance of foreign standards and terms.
Increases the risk of losing digital sovereignty and control over critical technologies.

Key Challenge

Neither option is ideal, highlighting the need for a balanced strategy that strengthens domestic AI capabilities while leveraging international partnerships.

Three Essential Requirements for Becoming an AI Superpower

Key Requirements for AI Leadership

Abundant Electricity
- AI data centres consume enormous amounts of electricity.
- Requires a reliable power supply, renewable energy capacity, and modern grid infrastructure.
- Adequate energy availability is essential for sustainable AI expansion.
Highly Capitalised Firms
- AI leadership demands companies capable of investing billions of dollars in innovation.
- Requires long-term funding for research and development (R&D).
- Firms must attract world-class AI talent and absorb high technological and financial risks.
Relentless Innovation
- AI technology evolves at an exceptionally rapid pace.
- Continuous innovation is needed to develop advanced models, improve efficiency, and launch new products.
- Countries that fail to innovate consistently risk losing technological competitiveness and global leadership.

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Major Risks Highlighted by the Report

Emerging Risks of Artificial Intelligence

1. Parasocial Relationships

AI chatbots are increasingly creating emotionally engaging interactions with users.
May lead to emotional dependency, social isolation, and psychological manipulation.
Raises concerns about addiction, particularly among adolescents.
AI companions could gradually substitute genuine human relationships.

2. Flattening of the Web

AI-powered search is transforming how people discover and consume information.
Leads to declining traffic for news websites and content creators.
Disrupts traditional digital media business models.
Concentrates information access within a few AI platforms.
Poses a threat to the sustainability of independent journalism.

3. Deepfake Epidemic

Generative AI enables the creation of highly realistic fake videos, images, audio, and documents.
Facilitates the spread of misinformation and disinformation.
Can influence elections and democratic processes.
Increases risks of identity theft and online fraud.
Erodes public trust by blurring the line between truth and falsehood.

4. AI and Financial System Risks

Banks and financial institutions are rapidly integrating AI into their operations.
Errors or biases in AI models can lead to incorrect investment and lending decisions.
May trigger market volatility and significant financial losses.
Creates systemic risks, necessitating stronger AI governance and financial regulation.

AI as a Geopolitical Weapon

AI as a Strategic Geopolitical Asset

Strategic Technology: Advanced AI models are increasingly regarded as strategic national assets rather than purely commercial technologies.
Control over AI Exports: Countries leading in frontier AI can restrict the export of advanced AI models, chips, and related technologies.
Access to Advanced AI: AI leaders can control or limit other countries’ access to cutting-edge AI systems and computing infrastructure.
Shaping Global Digital Governance: Technological leadership enables countries to influence global AI standards, regulations, and governance frameworks.
Technological Dominance: AI superiority enhances economic competitiveness, military capability, and geopolitical influence.
Key Takeaway: AI has emerged as a critical instrument of national power and geopolitical competition in the 21st century.

India’s Challenges

India currently faces several constraints:

Limited frontier AI models.
Dependence on foreign AI platforms.
Insufficient high-performance computing capacity.
Shortage of advanced semiconductor manufacturing.
Limited investment in frontier AI research.

If these gaps persist, India’s technological dependence may increase.

Way Forward for India

Way Forward for India’s AI Strategy

1. Develop Indigenous Frontier AI Models

Invest in foundation models, Large Language Models (LLMs), and multilingual AI.
Build a robust indigenous AI ecosystem to strengthen technological sovereignty.

2. Strengthen AI Infrastructure

Expand AI computing facilities and GPU clusters.
Develop green data centres and high-speed digital infrastructure to support AI innovation.

3. Invest in Human Capital

Promote AI education and advanced research.
Strengthen research universities and industry-academia collaboration.
Enhance AI-related skill development and talent creation.

4. Strengthen AI Governance

Establish a robust regulatory framework ensuring transparency, accountability, privacy protection, ethical AI, and human oversight.
Promote responsible innovation while safeguarding public trust.

5. Promote Responsible AI

Ensure AI systems are fair, inclusive, safe, transparent, and human-centric.
Align AI development with democratic values and societal well-being.

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6. Achieve Technological Self-Reliance

Reduce dependence on foreign AI platforms through domestic innovation.
Support AI startups and strengthen the semiconductor ecosystem.
Expand public-private partnerships to accelerate AI research and commercialization.

Government Initiatives Related to AI