Impact of Generative Artificial Intelligence (GenAI) in South Asia

Decline in Job Listings

• GenAI tools, such as ChatGPT, have led to a 20% decline in monthly job listings for white-collar roles.
• This decline predominantly affects moderately educated young workers like call centre agents and software developers.
• The slowdown is most significant in middle-skilled and entry-level positions within the business services sector.

Exposure to AI

• South Asia's workforce is described as only “moderately exposed” to AI-induced technological changes.
• Only 7% of South Asian jobs are at high risk of automation due to AI, compared to 15% in other emerging markets.

Complementary Roles and Productivity Gains

• Jobs that are complementary to AI, such as those of doctors and managers, have seen productivity gains.
• These roles are less likely to be replaced due to their reliance on face-to-face communication and decision-making.
• Demand for AI skills has grown, with such jobs commanding a 30% wage premium over other white-collar jobs.

Challenges and Recommendations

• Key issues include limited skilled workers, unreliable electricity, and inconsistent internet access.
• Improving infrastructure and education is crucial to maximize AI's benefits and minimize disruptions.
• To boost job creation, recommendations include increasing labor mobility and improving job matching.

Trade Reforms and Economic Growth

• The report suggests lowering tariffs as part of free-trade agreements to benefit younger and higher-skilled workers in manufacturing.
• Trade reforms are linked with faster employment and output growth.