ILO urges skills investment as AI reshapes ASEAN workforce
Skills investment becomes essential as ILO assesses AI exposure across Southeast Asian economies.
The International Labour Organization (ILO) has published a report examining how generative AI (GenAI) is reshaping labour markets across the Association of Southeast Asian Nations (ASEAN).
The study estimates that nearly 80 million workers, representing 22.9% of total employment in the region, work in occupations with more than minimal potential exposure to GenAI. However, the ILO stresses that there is currently no evidence of large-scale job displacement.
Only 3.3% of ASEAN workers, around 11.7 million people, are employed in occupations with the highest level of GenAI exposure, while roughly two-thirds of employment remains in occupations with no identified exposure.
Employment in highly exposed occupations has continued to grow, suggesting that AI is transforming work rather than replacing jobs at scale. The report also notes that adoption remains concentrated in technology-intensive sectors and is still relatively limited in many administrative occupations despite their high exposure.
The report identifies significant differences across ASEAN economies. Singapore has the highest share of workers with more than minimal GenAI exposure at 42.2%, followed by the Philippines (28.1%), Indonesia (21.7%), Vietnam (20.8%), and Thailand (20.6%).
The ILO also highlights a notable gender gap, with women more than twice as likely as men to work in highly exposed occupations because they are more heavily represented in clerical, administrative and professional roles. By contrast, exposure levels are broadly similar across younger and older working-age groups.
To maximise the benefits of AI while limiting potential risks, the ILO calls for human-centred AI governance, expanded upskilling and reskilling programmes, stronger support for micro, small and medium-sized enterprises (MSMEs), and closer regional cooperation on skills development.
The report argues that future labour market outcomes will depend less on AI exposure itself than on policy choices that strengthen the preparedness and resilience of workers, businesses and institutions.
Why does it matter?
The report challenges the assumption that generative AI will rapidly eliminate large numbers of jobs across Southeast Asia. Instead, it suggests AI is more likely to reshape existing occupations, with the scale of change depending on how quickly workers, businesses and governments adapt.
The findings also highlight that AI adoption is ultimately a policy challenge as much as a technological one. Investments in skills, workforce transitions and responsible AI governance will play a decisive role in determining whether AI improves productivity and job quality or widens existing inequalities across the region.
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