The ILO's recent study reveals 80 million workers in ASEAN are exposed to generative AI, but mass job displacement is not yet evident.
According to a recent report from the International Labour Organization (ILO), approximately 80 million workers, representing 22.9% of the workforce in ASEAN nations, hold jobs that have significant potential for exposure to generative AI. Despite this exposure, the ILO found no evidence of widespread job displacement resulting from this technology.
The ILO's analysis indicates that exposure does not equate to job loss; rather, it assesses the extent to which tasks within various professions might be automated or modified through generative AI. The estimates are derived from labor market surveys and statistical analyses.
Significant Impact on 11.7 Million Workers
The study identifies that 3.3% of the workforce, or 11.7 million individuals, are in high-exposure roles. Notably, around 67% of these workers are in sectors where the effects of generative AI remain largely undefined.
Professions facing the greatest risk include financial analysts, web developers, brokers, data entry operators, office clerks, payroll specialists, human resource personnel, and contact center employees. Interestingly, employment in these at-risk professions continues to rise, reflecting that while generative AI is emerging, its adoption is still in its infancy, particularly limited in administrative and office settings.
“The potential for transforming the labor market is significant, but large-scale disruptions are not yet visible,” the authors of the report stated.
This comprehensive study encompasses all 11 ASEAN countries, utilizing employment projections for 2025.
Singapore Leads in AI Exposure
Among the nine countries analyzed, Singapore exhibits the highest proportion of workers exposed to AI, at 42.2%. The Philippines follows at 28.1%, with Indonesia at 21.7%, Vietnam at 20.8%, and Thailand at 20.6%. The ILO attributes the Philippines' high percentage to its service-oriented and tech-centric economy.
Singapore is also noted as the most prepared nation in the region for AI integration due to its advanced digital infrastructure and strategic governmental initiatives.
Gender Disparity in AI Exposure
The report highlights a gender disparity, revealing that women are over twice as likely as men to occupy jobs with high exposure to generative AI. This trend is primarily due to their prevalent roles in administrative and clerical positions. The study found no notable differences between younger workers (ages 15 to 24) and older demographics.
Christian Wigeland, the ILO's lead economist, emphasized that the actual impact will largely hinge on governmental decisions, stating, “Productivity growth depends on investments in human capital and social protection. Ultimately, labor market outcomes will be determined by policies aimed at preparing workers, businesses, and institutions.”
The ILO urges ASEAN nations to enhance training and retraining initiatives, particularly targeting women and youth. Additional recommendations include bolstering support for small and medium enterprises, improving social safety nets, and fostering regional policy coordination.
In related observations, recent reports have noted that tech firms are increasingly citing AI as a justification for workforce reductions, even amidst growth. Sam Altman, CEO of OpenAI, has criticized large companies for using AI as a cover for layoffs, predicting that automation's impact on the labor market will intensify over time.
