ILO urges skills investment as AI reshapes ASEAN workforce

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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SpaceXAI launches Grok 4.5 for coding and agentic tasks

SpaceXAI has introduced Grok 4.5, its latest model for coding, agentic tasks and knowledge work.

The company describes Grok 4.5 as its most capable model to date, trained for real-world engineering, software development, science and mathematics tasks.

According to SpaceXAI, the model was trained across tens of thousands of NVIDIA GB300 GPUs, using data filtering, curation and reinforcement learning focused on multi-step technical work.

The company says Grok 4.5 can complete complex coding tasks and build functional applications from a single prompt.

Beyond software development, Grok 4.5 is designed to support knowledge-work tasks in Grok Build, including Excel modelling, PowerPoint slide design and Word document drafting.

SpaceXAI said the model serves up to 80 tokens per second and offers greater token efficiency than comparable leading models on selected tasks.

Grok 4.5 is available through Grok Build, Cursor and the SpaceXAI console. It is priced at $2 per million input tokens and $6 per million output tokens.

The company said Grok 4.5 is not yet available in the EU through its products or API console, with the EU availability expected in mid-July.

Why does it matter?

Grok 4.5 shows how frontier AI competition is moving towards practical agentic work, not only general chatbot performance. Coding, spreadsheet modelling, document creation and application-building are becoming key battlegrounds for AI providers targeting enterprise and professional users. The model’s pricing and claimed token efficiency also show growing pressure on AI companies to compete on cost and speed as much as benchmark performance.

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Swiss AI users report stronger workplace gains, Microsoft says

Swiss AI users are reporting stronger workplace productivity gains than their global peers, according to Microsoft’s 2026 Work Trend Index.

The company said 65% of AI users in Switzerland say they can now produce higher-value analytical and creative work that would not have been possible a year ago, compared with 58% globally.

The results point to a growing divide between organisations that introduce AI tools and those that redesign work around AI.

Among Swiss Frontier Professionals, defined by Microsoft as workers in organisations that embed AI into workflows and redesign how work gets done, 83% say AI has expanded the type of work they can produce.

Leadership alignment remains a challenge. Only 24% of Swiss AI users say their leaders are clearly and consistently aligned on AI strategy.

Microsoft said almost half of Swiss AI users feel it is safer to focus on current goals than to redesign workflows with AI in mind.

Swiss workers also emphasised human oversight. Some 84% treat AI output as a starting point rather than a final answer, while 46% identify quality control of AI output as a critical skill.

Microsoft said the next phase for Swiss organisations will involve moving from individual AI use to organisation-wide deployment, shared team capabilities and AI agents embedded in core workflows.

Why does it matter?

The Microsoft data suggests that workplace AI benefits depend less on tool availability and more on how organisations redesign workflows, train staff and set clear leadership priorities. The Swiss figures also show why human oversight remains central: productivity gains are linked to workers using AI as support, not as a replacement for judgement. For policymakers and employers, the broader issue is how to build AI skills and organisational capacity so productivity gains do not remain concentrated among the most advanced firms and workers.

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OECD report warns AI skills gaps could widen labour inequalities

The OECD has warned that stronger skills policies will be needed to prevent AI from widening labour-market inequalities.

In its policy paper Skills in the AI age, the organisation says AI can boost productivity, support economic growth and create new opportunities. Still, it may also deepen existing gaps if workers and firms are not prepared for the transition.

AI adoption by firms has accelerated rapidly in OECD countries, rising from around 7% to 20% of businesses between 2021 and 2025.

The OECD says the increase has been driven partly by the spread of generative AI tools such as ChatGPT and Copilot.

Adoption remains uneven. Larger firms and start-ups are more likely to use AI, while small and medium-sized enterprises face barriers including costs, infrastructure gaps and shortages of skilled workers.

The paper also cautions that exposure to AI does not automatically mean a job is likely to disappear.

High-skill occupations such as managers, professionals and engineers are among the most exposed to AI, but are less likely to be automated because they rely heavily on non-routine cognitive and social skills.

Low- and middle-skill roles involving routine manual or cognitive tasks face higher automation risks.

The OECD says workers will need a mix of foundational skills, ICT skills and complementary skills such as critical thinking, creativity and collaboration.

Advanced AI skills, including machine learning and data science, remain scarce, with workers possessing such skills accounting for around 1% of the workforce.

The organisation calls for stronger education and training systems, wider lifelong learning, AI literacy for all workers, employer-led training and better coordination between governments, industry and education providers.

Why does it matter?

The OECD report frames AI skills as a core labour-market issue, not only a technology-sector concern. If training systems do not adapt, AI adoption could widen gaps between large firms and SMEs, between high- and low-skilled workers, and between regions with different levels of digital capacity. The report also makes an important distinction for policy: jobs highly exposed to AI are not necessarily the jobs most likely to disappear, meaning governments need more targeted approaches to reskilling, worker support and AI literacy.

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Australia’s National AI Centre lists Microsoft Copilot training sessions for workers

Australia’s National AI Centre has listed two in-person Microsoft Copilot training sessions in Queensland aimed at helping participants build practical workplace AI skills.

The first session, Intro to Copilot, is scheduled for 7 July from 10:00 to 11:00 at The Precinct in Fortitude Valley. It is designed as an introductory session covering Microsoft Copilot Chat features, strengths and practical workplace uses for people with personal or business accounts.

The second session, Microsoft Copilot Workshop, will be held later the same day from 17:30 to 19:00 at the same venue. It is intended for people who already have access to Copilot at work but use it infrequently or want to build confidence using the tool.

Both Microsoft Copilot training sessions cover the fundamentals of generative AI, Copilot access, interface features, differences between personal and business versions, chat management, prompting techniques, Pages, Agents and responsible AI use. Participants in the workshop are asked to bring a device for hands-on exercises.

The events are hosted by the Queensland Government, with early-bird tickets priced at AUD 25 and general admission at AUD 40. The National AI Centre notes that registration is handled through third-party websites and that it does not endorse or take responsibility for their content.

Why does it matter?

The training sessions reflect a broader shift from introducing generative AI to helping employees use it effectively in day-to-day work. As tools such as Microsoft Copilot become more widely available, organisations are increasingly investing in practical skills such as prompting, workflow integration and responsible AI use.

The initiative also highlights the growing importance of AI literacy as a workforce capability. Building confidence in using AI tools may help organisations improve productivity while encouraging safer and more informed adoption across different sectors.

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AI is reshaping work more through job transformation than job loss, WSIS panel hears

AI is changing the world of work in more complex ways than simply replacing workers, according to experts speaking at the WSIS Forum 2026. Panellists from the International Labour Organization (ILO) and the International Telecommunication Union (ITU) argued that while AI will automate some tasks, its broader impact will be felt through changing job quality, workplace surveillance, recruitment practices and skills requirements, making human-centred policies essential to ensure workers benefit from the digital transition.

The discussion highlighted that governments, employers and workers all have a role in shaping the future of work, with speakers calling for stronger labour protections, social dialogue and investment in digital skills to prevent AI from deepening existing inequalities.

AI is changing tasks and working conditions more than eliminating jobs

Sher Verick, Head of the Employment Strategies Unit in the Employment Policy Department of the ILO, challenged the widespread narrative that AI will trigger mass unemployment. Presenting findings from the ILO’s AI exposure index, he said around one in four workers worldwide are exposed to AI, yet only 3.3% of global employment falls into occupations that are highly vulnerable to automation.

‘The focus shouldn’t only be on job losses,’ Verick argued, explaining that AI is transforming how work is organised rather than simply eliminating occupations. Jobs involving a diverse range of tasks are more likely to change than disappear, while new roles are already emerging across AI supply chains, including data annotation and other support functions.

He stressed that the most significant impact may be on job quality rather than job numbers. Automated recruitment systems, algorithmic task allocation and AI-driven performance monitoring are already reshaping working conditions across sectors, while productivity gains could eventually create new employment opportunities through wider economic growth.

Algorithmic management raises new concerns for workers

Uma Rani Amara, Senior Economist at the Research Department of the ILO, argued that the conversation about AI should extend well beyond generative AI tools such as ChatGPT to include the algorithmic management systems increasingly used across workplaces.

Drawing on examples from manufacturing and healthcare, she explained that AI-powered surveillance tools, CCTV systems and digital performance dashboards are allowing employers to monitor workers more closely than ever before. While companies often present these technologies as efficiency tools, she warned that they can increase workplace stress, intensify workloads and reduce workers’ autonomy.

In hospitals, digital workflow management systems may improve patient scheduling and resource allocation, but they also place nurses and doctors under greater pressure by increasing workload intensity and extending on-call responsibilities. Even commonly used tools such as messaging applications can create new privacy risks when sensitive information is shared outside secure systems.

Rani also drew attention to what she described as AI’s ‘invisible workforce’, the millions of people, largely based in the Global South, who label data, moderate content, and perform other essential tasks that allow AI systems to function.

‘We should stop calling it AI and start calling it ‘human-in-the-loop intelligence’,’ she said, arguing that AI’s apparent autonomy obscures the human labour underpinning every stage of its development.

She called for stronger protections for these workers through measures such as fair labour standards, mandatory disclosure of AI supply chains and certification systems showing where training data originates and under what working conditions it was produced.

Governments must shape the future of work

Juan Chacaltana, Senior Employment Policies Specialist at ILO, argued that technological change should not be viewed as an inevitable force to which societies simply adapt.

‘The future of work should be shaped through policy,’ he said, presenting findings from an ILO review of 75 employment policy documents that found governments increasingly integrating digital technologies into employment services, labour market information systems and skills programmes.

However, he cautioned against viewing digital tools as a solution in themselves. While technologies can help modernise public employment services and support labour market formalisation, they cannot replace traditional drivers of economic development such as productivity growth, investment and strong institutions.

Chacaltana also warned that governments should avoid using digital tools primarily for surveillance or enforcement. Instead, introducing digital identity systems, AI-assisted public services and labour market technologies should involve workers, employers and other stakeholders through meaningful social dialogue.

The discussion also highlighted groups facing particular risks during the AI transition. Rani warned that young workers could lose the entry-level jobs that traditionally provide experience and career progression, while women risk a ‘double whammy’ of displacement from automation alongside discrimination embedded in biassed AI recruitment systems. Older workers and people in informal employment could also face new forms of exclusion or reduced autonomy as algorithmic systems increasingly influence workplace decisions.

Skills and cooperation are key to an inclusive AI transition

Praachi Kumar, Capacity Development Officer at ITU, said demand for AI-related training has grown rapidly, with interest in AI courses through ITU Academy tripling over the past five years.

The Academy now serves more than 115,000 ICT professionals, the majority from developing countries, while ITU’s Digital Transformation Centres initiative has reached around 700,000 people in underserved communities through digital skills programmes.

Kumar said lifelong learning must remain human-centred, combining technical knowledge with practical experience and peer learning. She also highlighted new multilingual AI governance courses developed in partnership with UNESCO to help address widening skills gaps.

Throughout the discussion, speakers agreed that preparing workers for AI requires far more than technical training. They called for coordinated action across labour, education and technology ministries, alongside stronger partnerships between governments, employers, trade unions and international organisations.

Closing the session, moderator Maria Prieto Berhouet said the debate had consistently returned to one central principle: AI should serve people, not the other way around. Rather than allowing technological change to dictate the future of work, participants argued that governments and social partners must actively shape AI’s role so it enhances productivity while protecting workers’ rights, dignity and opportunities.

Track all key moments from the WSIS Forum 2026 on our dedicated WSIS page.

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UN pension fund case study highlights ServiceNow CRM rollout

An AI for Good Global Summit 2026 session will examine how the UN Joint Staff Pension Fund used AI and ServiceNow-based CRM tools to support digital services for more than 250,000 beneficiaries.

The session, titled How AI + ServiceNow powers UNJSPF for 250K+ beneficiaries, is scheduled for 7 July on the Solutions Stage.

According to the session description, the case study will focus on how AI and ServiceNow CRM were combined through NPSM, described as an AI-native platform built on ServiceNow.

Organisers say the implementation supported unified workflows, intelligent automation, improved visibility and a better user experience.

The session will also examine how the platform was designed to meet the security, scale and operational requirements of a UN system serving diverse stakeholders worldwide.

The case study is expected to offer lessons for nonprofits and humanitarian organisations seeking to move away from fragmented systems and simplify service delivery.

It will frame AI-enabled CRM and workflow automation as tools for reducing operational complexity and enabling organisations to allocate more resources to mission delivery.

Why does it matter?

The session shows how AI-enabled CRM and workflow tools are moving into large public-interest institutions, not only commercial customer service. For UN agencies, pension funds and nonprofits, the main question is whether such platforms can simplify operations while preserving security, accountability, data protection and reliable service delivery on a global scale. The case is useful, but it should be read as a platform case study rather than independent proof of measured impact.

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UNESCO highlights civil servants’ role in AI governance

UNESCO’s AI literacy training for civil servants has highlighted the importance of public-sector capacity in responsible AI governance.

The programme focuses on AI ethics, governance, risk management and responsible use, rather than only on productivity tools or prompt-writing skills.

UNESCO said many participants initially expected practical training on AI tools, but later connected issues such as accountability, transparency, bias, procurement and oversight to their own public-sector responsibilities.

The experience showed that meaningful human oversight depends not only on technical safeguards inside AI systems, but also on the capacity of officials involved in procuring, deploying, regulating and monitoring those systems.

UNESCO said participants often finished the programme with more questions than they had at the beginning. The organisation framed that as a sign of growing awareness of the complexity of AI governance, not as a lack of understanding.

Localisation also proved important. Through the AI Ethics Experts Without Borders network, training was adapted to national contexts and delivered in languages used by officials in their daily work, including cohorts in Egypt and Tunisia.

UNESCO said AI literacy should be seen as a foundation for broader institutional readiness, including risk assessment methods, procurement guidance, monitoring processes, internal governance structures and cross-government coordination.

Why does it matter?

AI governance often focuses on principles, laws and technical safeguards, but implementation depends on the officials who must apply those tools in practice. Civil servants involved in procurement, regulation, service delivery and oversight need enough AI literacy to ask informed questions, identify risks and challenge vendor or institutional assumptions. Without that capacity, “human oversight” can become a procedural checkbox rather than a meaningful accountability mechanism.

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UK firms sign Cyber Resilience Pledge amid rising AI threats

The UK government has launched a voluntary Cyber Resilience Pledge, with more than 60 businesses and strategic government suppliers committing to strengthening their cyber defences.

Founding signatories include companies from retail, finance, media, technology and utilities, including M&S, Nationwide, ITV, Microsoft UK, Cloudflare, Deloitte, Accenture UK, Vodafone Group and VodafoneThree.

The pledge asks organisations to take three practical steps: make cybersecurity a board-level responsibility, register for the National Cyber Security Centre’s Early Warning service and take a risk-based approach to requiring Cyber Essentials certification across supply chains.

The government said the pledge is designed mainly for medium and large organisations, but is open to organisations of all sizes and sectors.

Signatories will be asked to publish a signed pledge letter and provide an annual update on progress.

The launch comes ahead of the government’s National Cyber Action Plan, which is expected to set out further cooperation with industry on cyber resilience in the AI era.

According to the government, cyberattacks cost UK organisations an estimated £14.7 billion a year, while the NCSC handled 204 nationally significant incidents in the year to September, up from 89 the previous year.

Officials also warned that AI is lowering barriers for attackers by helping them find software weaknesses, write exploit code and scale attacks more quickly.

Why does it matter?

The pledge elevates cyber resilience to board-level corporate governance, rather than treating it solely as an IT function. Its supply-chain focus is also important because major cyber incidents often spread through vendors, service providers and connected business partners. By linking the pledge to AI-enabled threats, the UK government is signalling that basic cyber hygiene, governance and supply-chain assurance remain essential even as attacks become faster and more automated.

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Japan to establish AI council to drive national AI adoption

Japan’s government has approved plans to establish a new council to accelerate AI adoption and review the legal frameworks governing its development and use. The initiative forms part of the country’s 2026 policy guidelines and reflects growing efforts to integrate AI into key sectors of the economy.

The new body will replace a digital administrative and fiscal reform council established under former Prime Minister Fumio Kishida. Authorities said it will lead to what they describe as an ‘AI transformation’, a broad effort to reshape public services, business processes and working practices through AI.

Japan sees AI as an important tool for addressing the challenges of an ageing population and a shrinking workforce. Priority areas include healthcare, elderly care, transportation, infrastructure, workplace productivity and public administration, alongside broader digitalisation measures such as expanding the use of electronic medical records.

Chief Cabinet Secretary Minoru Kihara said AI and digital technologies should reduce burdens on citizens and businesses while improving public services. The government said it intends to accelerate digital transformation as part of its broader programme of economic and administrative reform.

Why does it matter? 

Japan’s decision reflects how governments are increasingly embedding AI into long-term economic and public-sector strategies rather than treating it as a standalone technology initiative. For countries facing ageing populations and labour shortages, AI is becoming a key policy tool for sustaining productivity, modernising public services and addressing workforce constraints.

The new council also illustrates the growing convergence of AI policy and regulatory reform. By reviewing legal frameworks alongside promoting adoption, Japan is seeking to ensure that governance evolves in step with technological deployment, balancing innovation with public trust and accountability.

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