The International Monetary Fund (IMF) has published a report indicating that the implementation of artificial intelligence (AI) is transforming labor demand across Asia. Since the launch of ChatGPT in November 2022, there has been an almost 10% decrease in employer demand for professions most susceptible to this technology.
This report, based on an analysis of approximately 40 million online job postings across 19 Asian economies, highlights the challenges faced by countries such as India, Indonesia, and the Philippines. These nations are striving to create productive jobs for their growing working-age populations while AI alters the sectors that should absorb new workers.
Nevertheless, it is noted that the decline in demand for workers in AI-affected professions has stabilized, suggesting that the technology's impact on employment is not limited solely to job displacement.
The IMF report emphasizes the emergence of new employment opportunities requiring specialized AI skills, such as AI agent development, augmented search generation, and prompt engineering. Employers are increasingly seeking employees capable of integrating AI into business processes, boosting productivity, and translating technological capabilities into practical applications.
However, the adoption of AI at the individual company level remains uneven. According to the report, only about 6% of firms in Asia explicitly state a need for AI skills in their job advertisements. Companies utilizing AI demonstrate stronger labor demand growth compared to those that have not adopted the technology, even in professions highly susceptible to automation. This suggests that AI can augment human capabilities, even while reducing the need for certain tasks.
The consequences of AI vary across different Asian economies. Developing economies, such as India, may initially be less affected by the technology since a significant portion of their workforce is employed in agriculture and other sectors less impacted by AI. However, the report warns that this could create long-term problems if AI hinders the transition of workers into higher-productivity manufacturing and service sectors.
For countries with expanding working-age populations, the main task is ensuring sufficient productive employment while guaranteeing that workers possess the skills necessary for an increasingly technology-driven economy.
The report stresses that the response to AI must go beyond merely encouraging technological adoption. Educational reforms, reskilling programs, digital infrastructure, and stronger labor market institutions are vital for preparing workers for changing professional demands. Businesses will also need to invest in staff development alongside AI implementation to help employees adapt to new roles and evolving skill requirements.
The IMF suggests that AI does not necessarily have to become an obstacle to inclusive growth. With timely investments in workforce preparation and economic readiness, Asia can leverage this technology to enhance productivity, stimulate innovation, and support sustainable employment.