World

AI set to reshape nearly 80 million jobs across Southeast Asia without mass layoffs

With almost 80 million workers exposed to AI-driven changes, the technology has yet to cause widespread job losses, a new International Labour Organisation report says

Updated 1 month ago · Published on 10 Jul 2026 3:18PM

AI set to reshape nearly 80 million jobs across Southeast Asia without mass layoffs
Artificial intelligence could transform nearly one in four jobs across ASEAN - July 10, 2026

ARTIFICIAL intelligence (AI) could reshape the nature of work for nearly 80 million people across Southeast Asia, but there is little evidence that the technology has triggered large-scale job losses, according to a new report by the International Labour Organisation (ILO).

The report found that approximately 79.8 million workers, representing 22.9 per cent of total employment across ASEAN member states, are employed in occupations where AI can automate or enhance at least some work tasks.

Of that number, around 11.7 million workers, equivalent to 3.3 per cent of total employment, are employed in occupations with the highest level of AI exposure.

Bloomberg cited the ILO noting that around 67 per cent of jobs across the region remain in occupations with no identified exposure to AI, indicating that the majority of the workforce is unlikely to face significant direct disruption in the near term.

Despite rapid advances in generative AI, employment in occupations with the greatest potential for automation or task augmentation has continued to grow since 2017, including after the emergence of generative AI, suggesting the technology has not yet displaced workers on a broad scale.

Among the occupations identified as having the highest AI exposure are financial analysts, multimedia developers and financial brokers.

"The findings point to the growing labour market importance of occupations in which generative AI may increasingly reshape tasks and work processes," the ILO said.

The organisation observed that while generative AI has demonstrated its ability to improve productivity for individual tasks, these gains have yet to translate into measurable improvements in overall labour productivity or significant changes in employment trends.

The findings contrast with workforce reductions announced by several technology companies, including Shopee and Meta Platforms, as businesses continue integrating AI into their operations.

However, the ILO said that across Southeast Asia, employment in occupations most exposed to AI has continued to expand, indicating that companies are generally adapting work processes rather than replacing workers outright.

Singapore recorded the highest proportion of workers employed in AI-exposed occupations, accounting for 42.2 per cent of total employment.

The city-state also ranked highest in AI preparedness, supported by its advanced digital infrastructure, highly skilled workforce and coordinated whole-of-government approach to AI adoption.

Singapore was followed by the Philippines, Indonesia, Vietnam and Thailand in terms of the share of workers employed in AI-exposed occupations.

The ILO urged governments across the region to strengthen AI governance and adopt human-centred policies that help workers and businesses adapt to technological change.

"Ultimately, future labour market outcomes will depend less on exposure alone than on the policy choices to build the preparedness and resilience of workers, enterprises and institutions to adapt and navigate the AI transition," the report said. - July 10, 2026

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