Study finds AI may cut up to 5% of jobs in Latin America
The region faces significant challenges due to economic inequalities and a large informal economy.
As per a report by the World Bank and International Labour Organization, between 2% to 5% of the jobs in Latin America and the Carribean are at risk of being redundant because of automation. The highest risk of automation confronts women and young workers in the formal sector. That is a huge challenge for one of the world’s most unequal regions, where most low-paying jobs are concentrated in the informal economy.
Despite the growth in AI, the report also highlighted how ‘gaps in digital infrastructure and other inequalities could hinder the potential impacts of generative AI in the region’. The figure hovers between 26% and 38% of the total employment in Latin America and the Caribbean regarding jobs being exposed by generative AI and being impacted by it somehow.
On the flip side, researchers also draw attention to the fact that AI could bring many benefits by enhancing workers’ productivity between 8% and 14% of jobs, especially for high-income earners working in the urban formal sector.
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