AI job impact less severe in developing nations: World Bank study – Outsource Accelerator

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WASHINGTON, D.C., UNITED STATES ā€” A World Bank study analyzing data from 25 countries reveals that artificial intelligenceā€™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 AIā€™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 AIā€™s benefits while protecting their workforce.

ā€œThis is a highly uncertain time for forecasting the future of work,ā€ notes a recent National Academies study, highlighting the complex nature of AIā€™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.