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A stark digital divide is emerging in the global race for artificial intelligence dominance, with Sub-Saharan Africa falling critically behind, according to a comprehensive new report released at the World Economic Forum in Davos.

The Global Labour Resilience Index (GLRI), published by Whiteshield in collaboration with Google Cloud, reveals that while nations like the United States and Singapore surge ahead in AI development, Sub-Saharan Africa houses 12 of the 20 lowest-ranked countries in AI readiness and labor market resilience.

The report, which analyzed 118 countries using over 70 indicators spanning a decade, paints a concerning picture of a widening technological gap. While the United States commands 60% of global AI investments and a quarter of the world’s AI startups, most Sub-Saharan African nations struggle with fundamental challenges in education, labor protection, and technological infrastructure.

Yet, amidst these challenges lies untapped potential. The report notes that six of the top 10 countries globally for demographic potential are in Sub-Saharan Africa, suggesting opportunities for an AI-driven economic transformation – if proper investments and policies are implemented.

The event, titled, “The Transformative Impact of AI on Global Economies and Labour Markets,” was chaired by Nobel Laureate Sir Christopher Pissarides, Special Advisor and Director at Whiteshield, alongside Anna Koivuniemi, Head of Google DeepMind Impact Accelerator, and brought together more than 50 senior policymakers, CEOs, academics and international organizations.

“As AI continues to transform industries, the GLRI 2025 highlights the urgency for governments, businesses, and individuals to build resilient labour markets,” stated Pissarides. “This year’s report provides actionable insights to address the challenges of technological disruption, economic inequalities, and global crises, ensuring inclusive and sustainable economic growth. By understanding how labour markets adapt and evolve, we can drive innovation and create opportunities that benefit everyone.”

Leading the GLRI’s 2025 rankings are the United States and Singapore, celebrated for their entrepreneurial ecosystems, agile labor policies, and strategic investments in AI research and innovation. The report highlights how these nations blend traditional economic strengths with advanced digital strategies.

Sweden, a close third, reflects the success of substantial investments in education and research and development (R&D). Meanwhile, countries in South Asia and the Middle East and North Africa (MENA) regions — including India, the United Arab Emirates, and Saudi Arabia — are climbing the ranks, leveraging AI’s transformative potential.

Europe offers a contrasting example, with six of the top 10 most resilient nations globally. Yet even here, disparities abound. Northern and Western Europe outperform Southern and Eastern regions, and while Germany excels in AI integration, countries like Moldova languish near the bottom of the rankings.

The AI Opportunity and Its Discontents

The promise of AI is undeniable. The GLRI outlines how technology could create entirely new job categories, from AI data architects to ethics officers, while enhancing productivity and job quality. Yet these opportunities are tempered by profound risks, including job displacement, wage inequality, and heightened economic divides.

The United States illustrates both the promise and peril of this transformation. Responsible for 60% of global AI investments over the past decade and home to a quarter of the world’s AI startups, the U.S. has cemented its leadership in innovation. Yet rising inequality, particularly between states, remains a growing concern.

In Asia, Singapore leads not just regionally but globally in governance and digital readiness. China, while excelling in AI adoption and equipment manufacturing, struggles with governance and institutional capacity, exposing vulnerabilities despite its technical prowess.

For regions like the MENA and APAC, the stakes are equally high. The UAE and Saudi Arabia have emerged as AI frontrunners, yet neighboring countries lag significantly. Across Asia-Pacific, nations like Japan and South Korea demonstrate resilience through technological integration, while traditional strengths bolster Australia and New Zealand.

“As AI reshapes the global workforce, the GLRI offers a roadmap for countries to navigate this new era. It highlights pathways for inclusive, forward-looking policies that will not only address the challenges of automation but also harness the potential of AI to create opportunities for all,” said Karan Bhatia, Google’s Global Head of Government Affairs & Public Policy.

For Sub-Saharan Africa, the challenge now lies in finding its own path to AI integration while addressing fundamental gaps in infrastructure and education. The alternative, experts warn, could be a new form of digital colonialism where the region becomes increasingly dependent on AI solutions developed elsewhere.

In the glow of Davos, where global leaders pondered the future of capitalism, the message from the GLRI was clear: AI’s transformative power is here to stay. Whether that power exacerbates inequality or ushers in a new era of inclusive growth will depend on the choices made today.