What new form of poverty might AI access create?

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A New Divide: The Emergence of AI-Driven Inequality

The increasing integration of artificial intelligence (AI) into various aspects of life, from workplaces to education, poses the risk of creating a new form of inequality. This divide may stem from unequal access to and proficiency in utilising AI tools, potentially leading to significant disparities in efficiency, learning capabilities, and information access. Historically, technological advancements have consistently produced both beneficiaries and those left behind, and the current AI revolution is anticipated to follow this pattern.
The Widening Capability Gap

The core of this emerging inequality lies in the disparity between individuals who can effectively leverage AI and those who cannot. A worker skilled in AI can complete tasks more efficiently, learn new information faster, and automate routine processes, thereby gaining a substantial advantage over peers lacking these capabilities. Similarly, students equipped with AI-assisted learning tools may acquire knowledge and skills at an accelerated pace compared to their less digitally enabled counterparts. This difference in capability, rather than innate intelligence or ambition, could become a primary driver of future economic and social stratification.
Beyond Internet Access: The Digital Proficiency Divide

While Malaysia has achieved widespread internet access, with individual usage rates exceeding 97 per cent in 2024, the new technological divide is shifting from mere connectivity to digital proficiency. The challenge is no longer simply being online but understanding how to harness the benefits of that connection through AI. Evidence from a recent EY Malaysia survey indicates that 93 per cent of Malaysian employees are already using generative AI at work, reporting significant time savings and productivity improvements. This trend underscores that AI is an active component of the modern economy, and those unable to adapt risk falling behind.
Accumulative Disparities in Income and Social Mobility

The impact of AI proficiency extends beyond individual productivity to broader societal outcomes. Small businesses that adopt AI solutions may gain a competitive edge over those that do not, and communities with robust digital ecosystems are likely to attract more investment. Over time, these initial differences in digital capability can accumulate, manifesting as significant gaps in income, productivity levels, and social mobility. This concern is particularly relevant in Malaysia, where research suggests a substantial portion of the workforce faces high exposure to generative AI, with nearly half potentially experiencing significant task transformation.
Redefining Poverty in the Age of AI

The rise of AI necessitates a re-evaluation of how poverty and vulnerability are understood. While traditional policy focuses on income and education, future inequalities may increasingly be shaped by an individual's ability to access, comprehend, and utilise advanced technologies. This aligns with the Capability Approach, which posits that true development lies not just in possessing resources but in the capacity to use them effectively. Therefore, ensuring equitable access to AI literacy, digital skills training, and lifelong learning opportunities is crucial. Targeted support for vulnerable groups, including those in rural areas, lower-income households, and small businesses, is essential to prevent existing inequalities from being amplified by technological advancements.

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