AI and the Future of Work: Balancing Opportunity and Disruption

Introduction 

Prerna Seth from JustJobs Network moderated the second webinar in the Skills in Action Series, focusing on AI’s impact on labour markets in developing countries.  

Artificial Intelligence (AI) has the potential to reshape global labour markets, but it also poses risks, especially for developing countries. As AI technologies advance, jobs in these regions, particularly in routine, low-skill tasks, are at risk of being automated or displaced. In industries like data annotation, common in developing countries, workers often perform repetitive tasks that are poorly paid and precarious. While these jobs provide income, they don’t offer long-term stability or growth and may be replaced by more advanced AI systems in the future. 

As AI changes the nature of work, developing countries face a unique challenge: a significant portion of their workforce lacks the necessary skills to thrive in an AI-driven economy. Traditional education systems often don’t equip workers with the problem-solving, critical thinking, and digital skills needed for these new roles. Without a concerted effort to update education and skilling strategies, many workers in developing countries risk being excluded from the opportunities AI offers. 

During this webinar, the panellists discussed the challenges that AI brings for the workforce in their regions and shared their inputs on ways to manage the disruption and leverage opportunities toward building inclusive and equitable labour markets. 

African Perspective  

Stephanie Allais, from the University of Witwatersrand, highlighted that AI’s impact in Africa needs more research as current debates focus primarily on the Global North. She identified five main areas of AI impact in Africa: 

– Platform work and gig economy 

– Digital skills and tech professionals 

– Automation and job displacement 

– Digital financial inclusion 

– Algorithmic management 

She stressed that technological change should be viewed within broader social and political contexts, not as an independent force. Providing a nuanced perspective on how AI affects African labor markets both directly and indirectly, she emphasized that while many African workers aren’t directly impacted by AI, they live “in the shadow of the digital age.”  

Talking about how skilling could aid the workforce in adapting to the fast-paced technological changes, she warned against quick-fix solutions and emphasized the enduring value of comprehensive education that enables people to be responsive to changes over narrow technical training.  

Latin American Perspective 

Ramiro Albrieu, from Sur Futuro, emphasized reframing the AI discussion from impacts to creation, bringing a unique perspective on AI’s role in upper middle-income countries, particularly in Latin America. His insights revealed how AI is creating a new form of digital brain drain, where highly skilled workers remain physically present but become increasingly detached from local economies. He highlighted the gendered nature of tech innovation in Latin America, noting how the fintech sector, unlike traditional banking, lacks gender parity regulations, resulting in male-dominated innovation spaces. 

Regulatory Perspective 

Renjini Rajagopalan, from JJN, discussed the importance of proactive labour regulation adaptation and the need to address the digital divide in the Global South. She highlighted examples from the EU AI Act and California’s AI regulations. She offered critical insights into regulatory approaches to AI, emphasizing the need to build upon existing labour protections rather than creating entirely new frameworks. She highlighted the need for proactive rather than reactive regulatory approaches. Regulation should focus not just on the technology itself but on protecting and preparing the workforce for AI-induced changes. 

Gender and Education 

The panellists also talked about the widening gender divide in tech-related sectors and the need for gender literacy in primary education. While technological innovations in education, such as ed-tech platforms, will continue to challenge traditional education systems, it is important to maintain human elements in education alongside technological advancement. “Education requires teachers, and the need for face-to-face contact is not just about lack of infrastructure, which is a very real problem in most developing regions.” 

Key Takeaways 

The webinar emphasized that while AI presents opportunities for economic growth, careful consideration must be given to ensuring equitable distribution of benefits, particularly in developing countries. This requires thoughtful policy frameworks, strong labour protections, and education systems that prepare workers for a rapidly changing technological landscape. The discussion highlighted the: 

1. Need for more Global South-focused research on AI impacts. 

2. Importance of balancing technological advancement with human-centered development. 

3. Critical role of regulation in ensuring equitable AI benefits. 

4. Necessity of addressing gender disparities in tech sectors. 

5. Value of comprehensive education reform that goes beyond digital skills.