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ILO and World Bank paper says GenAI may deepen labour-market divides

A joint working paper by the International Labour Organization (ILO) and the World Bank says generative AI is likely to reshape labour markets globally, but not in the same way across countries.

The paper finds that advanced economies face greater overall exposure, while developing economies may see disruption arrive faster than productivity gains due to weaker digital infrastructure and differences in how work is organised.

Prepared as a background study for the World Development Report 2026, the paper examines labour-market exposure to GenAI across 135 countries, covering about two-thirds of global employment. According to the study, digital infrastructure and job-task composition are among the main factors shaping the distribution of risks and opportunities between advanced and developing economies.

Exposure is highest in advanced economies, especially in clerical and professional occupations. Lower-income countries are less exposed overall, but the paper says structural constraints reduce their ability to benefit from the technology. A central concern is that workers in jobs vulnerable to automation are often already online, even in poorer settings, meaning displacement could happen relatively quickly.

The paper also says many of the jobs most exposed to automation in developing economies are relatively higher-quality roles, including clerical and administrative work that has often provided a route into decent employment, especially for women and young workers. AI-driven automation, the study warns, could narrow those pathways.

Potential gains are also uneven. Many workers in jobs that could benefit from GenAI lack reliable internet access in lower-income settings. The paper adds that the same occupation title can involve different tasks depending on the country, with workers in poorer economies often carrying out fewer non-routine analytical tasks, relying less on computers, and doing more routine or manual work. Such differences reduce the scope for productivity gains from GenAI deployment.

ILO and the World Bank conclude in the paper that GenAI’s labour-market effects will depend not only on the technology itself, but also on digital connectivity, skills, task organisation, labour-market institutions, and social protection. Expanded digital access, stronger skills policies, and better labour protections are presented as necessary if the gains from GenAI are to be shared more broadly.

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South Korea sets ambition to become AI leader

South Korea has unveiled a national strategy to become one of the world’s top three AI powers by 2028. The plan combines investment in digital infrastructure, data systems and next-generation connectivity.

Authorities aim to expand networks by advancing 5G capabilities and preparing for the commercial deployment of 6G by 2030. Cybersecurity and data integration are also key priorities to support a stronger digital ecosystem.

The strategy includes developing talent across education levels and investing in core technologies such as semiconductors and quantum computing. AI adoption is expected to expand across sectors, including manufacturing, healthcare and agriculture.

The South Korean officials also plan to promote digital inclusion through learning centres and assistive technologies. Coordination between ministries will be strengthened to ensure effective delivery of the long-term roadmap.

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Microsoft expands cloud footprint in Denmark

Microsoft has opened a new data centre region in Denmark, marking a major investment in cloud infrastructure and digital resilience. The Denmark East region spans multiple sites and aims to support secure, local data processing.

The project is expected to boost economic activity, with billions of dollars in projected spending and strong spillover effects for local technology firms. Organisations adopting cloud services are likely to rely on domestic partners across IT, cybersecurity, and software development.

Businesses and public sector users will gain access to advanced cloud and AI tools, alongside improved data sovereignty under the EU rules. Local data storage and low-latency services are designed to strengthen compliance and operational efficiency.

Sustainability also plays a central role, with renewable energy use, zero-water-cooling systems, and waste-heat recovery supporting local Danish communities. Broader ambitions include reinforcing digital sovereignty while enabling innovation across industries.

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Boston schools expand AI learning initiative

A new partnership led by the City of Boston aims to expand AI literacy across public schools, supported by funding from tech entrepreneur Paul English. The initiative brings together government, academia and industry to strengthen digital skills.

The programme will introduce AI-focused learning in high schools, alongside teacher training and the development of industry-informed curricula. Plans include creating student ambassador roles and offering access to advanced courses.

University of Massachusetts Boston in the US will help design educational content and provide resources through its applied AI institute. The collaboration aims to prepare students for changing job markets shaped by emerging technologies.

Officials say the effort will support responsible and ethical use of AI while opening career pathways. An advisory board of industry experts will guide the programme and connect schools with the wider technology sector.

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UK regulator targets misleading online reviews in new crackdown

The Competition and Markets Authority has launched new investigations into five companies as part of a wider crackdown on fake and misleading online reviews, targeting practices that shape consumer decisions rather than reflect genuine customer experiences.

The cases involve Autotrader, Feefo, Dignity, Just Eat and Pasta Evangelists across sectors, including car sales, food delivery and funeral services.

CMA is examining whether negative reviews were suppressed, ratings inflated, or incentives offered in exchange for positive feedback without disclosure.

Concerns also extend to moderation practices and whether review systems provide a complete and accurate picture of customer experiences, rather than favouring reputational or commercial interests. No conclusions have yet been reached on whether consumer law has been breached.

Online reviews play a central role in consumer behaviour, influencing significant levels of spending across the UK economy.

Research indicates that a large majority of consumers rely on reviews when making purchasing decisions, raising concerns that misleading content can distort markets and undermine trust, particularly as AI makes it harder to detect fabricated reviews.

The investigations form part of a broader enforcement effort under the Digital Markets Competition and Consumers Act 2024, which introduced stricter rules on fake and misleading reviews.

Authorities aim to improve transparency and accountability across digital platforms, with potential penalties reaching up to 10% of global turnover for companies found to have breached consumer protection laws.

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Study highlights blind spots in digital regulation

A recent academic study argues that legal frameworks fail to fully capture the power of cloud infrastructure in the digital economy. The research suggests that regulators focus too heavily on services and outputs rather than on the underlying systems that shape markets.

Authors highlight how major cloud providers influence innovation, data flows and technological development. Existing laws are said to overlook the ability of these actors to structure markets and define how digital systems operate.

The paper links these gaps to fragmented legal approaches, specifically in the EU, that treat technology as a series of isolated issues. Such perspectives risk missing broader forms of control embedded in infrastructure and platform ecosystems.

Researchers call for a shift in legal thinking to better recognise infrastructure-level power and its societal impact. Stronger frameworks are seen as essential as global digital systems become increasingly central to economic and political life.

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Lille proposed as EU customs hub

France has submitted a bid to host the future EU Customs Authority in Lille, positioning itself at the centre of efforts to modernise the customs union. The proposal highlights national expertise and a leading role in shaping recent reforms.

Authorities argue the new body will strengthen internal market security, improve oversight of e-commerce and enhance cooperation between member states. France has supported initiatives to tackle illicit trade and improve risk management.

Officials also point to strong operational experience, including international customs networks and the use of AI tools to screen postal shipments. Such capabilities are presented as key to supporting the authority from its launch, but questions are raised concerning the use of AI and its biases.

Lille is promoted as a strategic logistics hub with strong transport links and access to skilled workers. Its location near major European trade routes is expected to support recruitment and coordination across the bloc.

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Digital divide shapes AI job outcomes

A joint study by the International Labour Organization and the World Bank finds that AI will reshape labour markets unevenly across countries. Research covering 135 economies highlights growing risks for workers as automation expands.

Advanced economies show higher exposure to AI, particularly in clerical and professional roles. Lower-income regions face fewer direct impacts but lack the infrastructure and skills needed to capture productivity gains.

The digital divide plays a central role, with many vulnerable jobs already online and therefore exposed to automation. Workers in roles with potential benefits often lack reliable internet access, limiting opportunities.

The ILO’s findings suggest outcomes depend on infrastructure, skills and job design rather than technology alone. Policymakers are urged to improve connectivity, training and social protections to spread benefits more evenly.

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National security rules to prioritise UK contracts in AI, steel and shipbuilding

The UK government has announced new procurement guidance that will treat shipbuilding, steel, AI, and energy infrastructure as critical to national security, with departments directed to prioritise British businesses where necessary to protect national security. The press release was published on 26 March by the Cabinet Office and its Minister, Chris Ward.

According to the government, the new approach is intended to respond to recent supply-chain fragility and strengthen domestic capacity in sectors it describes as vital to national security. The guidance is presented as the first clear framework for how departments can protect the UK’s economic security and build resilience in the four named sectors.

Additional measures in the package go beyond sector prioritisation. The government says departments will either use British steel or provide a justification if steel is sourced from overseas, linking the change to the UK Steel Strategy launched the previous week. Officials also say the reforms support the government’s Modern Industrial Strategy and follow the publication of the National Security Strategy.

Procurement reform is another part of the package. Under a new Public Interest Test, departments will be asked to assess whether outsourced service contracts worth more than £1 million could be delivered more effectively in-house. The government says the test will cover more than 95% of central government contracts by value.

Community impact is also being built into the contracting framework. Departments will be required to publish and report annually on a specific social value goal for contracts above £5 million, which the government says will cover more than 90% of central government contracts by value. Companies bidding for public contracts are also being encouraged to include commitments on local jobs, skills, and apprenticeships.

The press release also says a new suite of AI tools has been developed to streamline the commercial process. Contract terms will be simplified, and additional business information will be integrated into a central platform, with the stated aim of reducing repeated submissions by smaller businesses bidding for multiple contracts.

Chris Ward said: ‘This Government is backing British businesses and the working people who power them. These reforms are about using the full weight of Government spending to support British jobs, protect our national security and grow our economy.’ He added: ‘Whether you make steel in Scunthorpe, build ships on the Clyde or run a small tech firm in the Midlands, this Government is on your side.’

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Mistral AI launches open-source voice model for enterprises

Mistral AI has introduced a new open-source text-to-speech model designed to power voice assistants and enterprise applications, rather than relying on proprietary solutions.

The model, named Voxtral TTS, marks the company’s entry into the competitive voice AI market alongside players such as OpenAI and ElevenLabs.

Voxtral TTS supports nine languages, including English, French, German, Spanish, and Arabic, allowing organisations to deploy multilingual voice systems across different markets.

The Mistral AI model is designed to operate efficiently on devices such as smartphones, laptops, and even wearables, reducing infrastructure costs rather than relying on large-scale cloud systems.

It can replicate custom voices using only a few seconds of audio, capturing accents and speech patterns while maintaining consistency across languages.

The system is optimised for real-time performance, delivering rapid response times and enabling applications such as live translation, dubbing, and customer engagement tools.

Built on a compact architecture, it balances efficiency with high-quality output, aiming to produce natural-sounding speech instead of robotic voice synthesis. Earlier releases of transcription models suggest a broader strategy to develop a full suite of voice technologies.

Looking ahead, Mistral AI plans to expand towards end-to-end multimodal systems capable of handling audio, text, and image inputs within a single platform.

The company’s focus on open-source development and customisation is intended to attract enterprises seeking flexible solutions, positioning its technology as an alternative to closed ecosystems in the growing voice AI market.

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