AI job impact less severe in developing nations: World Bank study
WASHINGTON, D.C., UNITED STATES — A World Bank study analyzing data from 25 countries reveals that artificial intelligence’s impact on employment may be less dramatic in developing nations compared to their wealthier counterparts.
Labor market differences
Workers in low-income countries face lower AI exposure than those in high-income nations, primarily due to their different labor market structure. Jobs involving manual labor and interpersonal interaction, which are more prevalent in developing nations, are less susceptible to AI-driven changes.
Infrastructure barriers
Limited access to electricity and internet connectivity serves as a natural buffer against rapid AI adoption in low-income countries. This technological gap, while challenging for development, inadvertently provides these nations with more time to adapt to AI-driven changes.
Demographic patterns
The study uncovered interesting gender dynamics, with women showing higher AI exposure than men, but only in high and upper-middle-income countries. Unlike wealthy nations, developing economies show minimal age-related differences in AI exposure patterns.
The research, covering a population of 3.5 billion people, suggests that AI’s transformation of the workforce will likely be more gradual in the Global South. This slower pace of change offers developing nations a unique opportunity to implement strategic policies that can harness AI’s benefits while protecting their workforce.
“This is a highly uncertain time for forecasting the future of work,” notes a recent National Academies study, highlighting the complex nature of AI’s impact on global employment.
The findings suggest that developing nations have a crucial window of opportunity to shape how AI integrates into their economies, potentially leading to more positive outcomes than those predicted for developed nations.
