The Asia-Pacific region is expected to experience significant labor market shifts due to artificial intelligence (AI). Advanced economies, such as Singapore, are already seeing around half of their jobs exposed to AI, while emerging markets like Laos have only a quarter. However, this shift also presents opportunities for productivity enhancement.
A key concern is the widening of income inequality between countries and within them. While AI can complement certain jobs in advanced economies, it disproportionately affects service, sales, and clerical roles – typically held by women – and leaves men more secure in occupations that are less likely to be impacted.
To address this, policymakers should prioritize effective social safety nets and reskilling programs for affected workers. Education and training to help the workforce adapt to AI’s capabilities is also crucial in emerging economies. Furthermore, governments must set regulations that promote ethical AI use and data protection to mitigate risks and capitalize on opportunities for growth and productivity.
This analysis is based on the IMF’s October 2024 Asia-Pacific Regional Economic Outlook. For more information, see Kristalina Georgieva’s blog on labor market implications and the Chart of the Week highlighting economies better equipped for AI adoption.
Source: https://www.imf.org/en/Blogs/Articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies