The AI Wave: Southeast Asia’s Workforce on Shaky Ground

The International Labour Organization (ILO) has released a report detailing the impact of Artificial Intelligence (AI) on Southeast Asia’s workforce. According to the report, nearly a quarter of the region’s jobs are at risk due to automation. This is not just about job replacement; it’s also about the shift in tasks and responsibilities that AI will bring.

The numbers highlight the disparity: 67% of Southeast Asian workers have jobs with no identified exposure to GenAI, while only 3.3% are in occupations with high levels of automation. However, this masks the fact that entire industries – not just specific jobs – are under threat. Phu Huynh, a researcher at the ILO, notes that our understanding of AI’s impact has become more nuanced since the early forecasts surrounding the Fourth Industrial Revolution.

Clerical, administrative, and professional jobs are among the most vulnerable to automation due to their high levels of routine and repetitive tasks. While some workers may adapt by moving up the value chain or evolving their skills, this assumes a level of social mobility and economic resilience that is far from guaranteed in many Southeast Asian countries. These countries often struggle with inadequate digital infrastructure and labour policies that barely scratch the surface.

Manual trades, craft, and agricultural work are relatively insulated – for now. However, the effects of AI will vary across the region, depending on factors like economic development, digital infrastructure, and labour policies. The ILO’s report emphasizes the importance of proactive policy-making: governments need to invest in education and retraining programs that can keep pace with technological change.

The 67% of workers who are already in jobs with no identified exposure to GenAI may think they’re safe, but this is likely a temporary reprieve. As AI becomes more pervasive, new sectors will emerge as high-risk areas. The line between low-skilled and high-skilled work will continue to blur, making it harder for workers to adapt.

History suggests that every major technological disruption has had a disproportionate impact on certain groups – usually the most vulnerable. This is not a new story; we’re just witnessing another iteration of the same narrative. However, this doesn’t mean we can’t learn from past mistakes or shape a more equitable future.

The question now is what this means for workers, policymakers, and businesses across Southeast Asia. Will governments respond with bold initiatives to mitigate the impact of AI, or will they tinker around the edges? Can companies adapt quickly enough to upskill their workforces, or will they simply shed jobs and move on? As we watch this story unfold, one thing is clear: the stakes are too high for complacency.