Artificial intelligence (AI) is rapidly reshaping labour markets and economies worldwide, but far from a universal solution, its benefits are unevenly spread, heightening global and local inequalities. Recent data from the European Central Bank (ECB), International Monetary Fund (IMF), Microsoft, and independent research reveal a complex picture of AI adoption, employment impacts, and growing divides between rich and poor countries.
A European Commission survey in May 2026 found that only just over half of Europeans use AI, with just 25% incorporating it at work—mostly younger, educated workers in innovative countries. The ECB reported that AI is already disadvantaging certain groups, especially junior workers in highly exposed occupations, with low-risk jobs increasing as automation progresses, but not without social cost.
Microsoft’s latest diffusion report shows that 28.8% of working-age populations in the Global North use AI regularly, compared to just 16.2% in the Global South, reflecting unequal access to these emerging technologies. The IMF echoed these concerns in August, warning that AI might widen cross-country inequality and reinforce market concentration.
Yet, the narrative of widespread job destruction remains unproven. Research cited by El País points to a 3.3% increase in employment among the most AI-adopting companies globally, backed by PwC’s 2026 AI Jobs Barometer showing faster headcount and wage growth in such firms. This suggests that while some jobs are under threat, others are being created or enhanced through AI.
Steven Boykey Sidley, writing for Daily Maverick, sums up the paradox: “Even if AI solves science’s hardest problems, inequality may deepen as ownership, access and adoption remain concentrated among the wealthy.” He highlights how technology often reaches poorer countries quickly but fails to penetrate deeply, limiting usage and economic transformation.
Overall, the biggest verified risk from AI is not the collapse of employment but the concentration of related gains within wealthier sectors and countries, with implications for social equity both within South Africa and globally. Unverified claims about AI solving problems like ageing, cancer, or energy remain speculative and unsupported by current evidence.
As Cape Town and the Cape Flats face their own digital divides, this global trend underscores the importance of addressing unequal access to new technologies. Local policymakers and businesses must work to ensure AI’s promise does not remain confined to elite circles, but contributes to inclusive growth.
Further investigation is needed to track AI’s evolving impact on employment and inequality, particularly among South African youth and low-skilled workers. CapeFlats.co.za will continue monitoring these developments informed by new research and local community insights.