A joint study by the International Labour Organisation and the World Bank finds that generative AI (GenAI) will reshape labor markets worldwide, with uneven impacts across countries. Differences in digital infrastructure and job tasks are key factors influencing risks and opportunities. Developing and advanced economies are affected differently, with low-income countries facing structural constraints.
The study examined labor market exposure to GenAI across 135 countries, covering about two-thirds of global employment. It found that disruption may occur faster than productivity gains in developing economies due to digital gaps and differences in work practices. Advanced economies face higher exposure, particularly in clerical and professional roles, while low-income countries see less overall exposure.
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Researchers identified a “small buffer, big bottlenecks” dynamic in developing nations. Workers in automation-prone jobs are often connected and may face rapid displacement, whereas workers in augmentation-potential roles often lack internet access, limiting productivity gains. This could close pathways into higher-quality, office-based employment, particularly for women and younger workers.
The study also highlighted the “white-collar bypass” risk, where office jobs that historically supported upward mobility in advanced economies may not materialize in developing countries. Workers in lower-income economies perform fewer analytical, non-routine tasks and rely less on computers, further limiting benefits from AI-driven productivity improvements.
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Overall, the report stresses that GenAI’s impact depends on technology, digital infrastructure, task organization, and skills. Policymakers are urged to expand connectivity, support skills development, and strengthen labor protections to ensure broader and more equitable AI benefits.