Washington, Mar 28: A joint study by the International Labour Organization and the World Bank has cautioned that generative artificial intelligence (GenAI) is set to transform labour markets worldwide, with developing economies likely to face faster disruption and fewer immediate gains.
The findings, part of the forthcoming World Development Report 2026, are based on an analysis of labour market exposure across 135 countries, covering nearly two-thirds of global employment.
The report said while advanced economies may benefit from productivity gains and job transformation, developing countries could experience greater risks, including job losses and widening inequality.
In high-income nations, jobs in clerical, administrative and professional sectors are most exposed to GenAI. However, workers in these economies are more likely to use digital tools and perform non-routine, analytical tasks, enabling them to adapt and benefit from technological changes, it noted.
In contrast, developing economies show lower overall exposure but face sharper risks.
Many of the jobs vulnerable to automation—such as clerical and entry-level office roles—are among the more stable employment opportunities, particularly for women and young workers.
The study warned that automation driven by GenAI could erode these pathways to upward mobility, potentially deepening social and economic inequalities.
A key concern highlighted is the digital divide. Workers in jobs at higher risk of automation are often digitally connected, making them more susceptible to displacement, while those who could benefit from AI-driven productivity gains frequently lack reliable internet access and digital infrastructure.
The report also pointed out that similar job titles often involve different tasks across countries.
Workers in developing economies tend to perform more routine functions with limited use of technology, reducing the potential for productivity enhancement through AI.
Without policy intervention, GenAI could accelerate job displacement in vulnerable sectors, contribute to labour market polarisation and widen income gaps between and within countries, it added.
The study emphasised that outcomes will depend largely on policy responses.
It called for expanding digital infrastructure, ensuring affordable internet access, investing in digital and AI-related skills, and strengthening labour market institutions and social protection systems.
“Technology alone will not determine outcomes; preparedness will be key,” the report said, stressing that countries with stronger digital ecosystems and skilled workforces will be better positioned to harness the benefits of GenAI.
The findings underscore the urgency for developing economies to bridge digital gaps and prepare workers for a rapidly evolving global job landscape, it added.
