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International Labour Organization warns AI could reshape labour markets across the Arab region

The International Labour Organization (ILO) and the United Nations Economic and Social Commission for Western Asia (ESCWA) have examined how AI may reshape labour markets and employment patterns across the Arab region.

The organisations released a report exploring how AI adoption may transform jobs, productivity, and workforce dynamics by 2035. According to the report, outcomes will depend on policy choices related to skills development, labour protections, and social support systems.

The report outlines three possible scenarios ranging from inclusive AI-driven growth to increased inequality linked to insufficient labour protections and workforce adaptation measures.

One projected strong AI-driven economic growth, combined with large-scale investment in workforce transition and retraining programmes.

Another warned that rapid technological adoption without sufficient social safeguards could deepen inequality and displace large numbers of lower- and middle-skilled workers.

A third scenario envisaged a more gradual AI integration, supported by coordinated policy reforms and inclusive labour-market strategies.

The report identifies sectors such as healthcare, education, logistics, tourism, and digital services as areas where AI-related employment opportunities may emerge. At the same time, the organisations noted that automation could reduce demand for some routine and clerical occupations.

ILO Regional Director for Arab States Ruba Jaradat said AI technologies are already affecting workplaces across public administration and service sectors in the region. She added that nearly one-quarter of occupations may experience either displacement or technological augmentation linked to generative AI systems.

The analysis also highlighted widening skills mismatches between education systems and labour market demands, with some countries facing gaps ranging from 40% to 70%. The report also highlights the importance of investment in lifelong learning, labour market institutions, social protection, and AI governance frameworks.

The discussions took place during a preparatory session linked to the Arab Forum for Sustainable Development, where policymakers, labour organisations, and international experts examined how AI may affect youth employment, women workers, and lower-skilled populations across the region.

Why does it matter?

ILO highlights how developing and emerging economies may experience AI transitions differently depending on infrastructure, education systems, governance capacity, and investment levels. Policymakers across the Arab region are now under increasing pressure to modernise labour systems while ensuring that AI adoption supports inclusive growth instead of deepening social inequality.

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Meta reportedly cuts 8,000 jobs as AI investment and restructuring accelerate globally

Meta is reportedly cutting about 8,000 jobs globally as part of a restructuring aimed at reducing costs while increasing spending on AI infrastructure and products.

According to media reports, the cuts represent about 10% of Meta’s workforce and are intended, in part, to offset the cost of the company’s expanding AI investments. The reductions are expected to affect engineering and product teams in particular, with employees in several regions notified as the restructuring begins.

Reports also indicate that around 7,000 employees are being reassigned to new AI-focused teams, while thousands of open roles have been closed. The restructuring reflects Meta’s effort to redirect resources towards AI products, infrastructure and agent-based tools across its platforms.

In Ireland, reports said around 350 jobs were affected, representing a significant share of Meta’s local workforce. The company has not publicly confirmed all regional figures, but said affected employees and authorities had been notified.

The cuts come as Meta prepares for a major increase in AI-related capital expenditure. Reports say the company expects spending to rise sharply in 2026 as it builds infrastructure for AI models, personalised assistants and other AI-powered features across Facebook, Instagram, WhatsApp and its wider product ecosystem.

Staff concerns have also emerged around the pace of restructuring, internal communication and workplace monitoring linked to AI development. Reports cited employee unease over plans to monitor computer activity as part of AI training practices.

Why does it matter?

Meta’s restructuring shows how major technology companies are reallocating labour and capital around AI. The reported job cuts are not only a cost-saving exercise, but part of a wider shift in which companies are redirecting resources towards AI infrastructure, automation and agentic systems. The development also highlights a growing tension in the tech sector: AI is being presented as a long-term growth engine, while workers face uncertainty over how that transition will reshape roles, teams and investment priorities.

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Singapore and Google strengthen collaboration on AI innovation and digital governance

Google and Singapore’s Ministry of Digital Development and Information have announced an expanded National AI Partnership designed to accelerate the deployment of frontier AI technologies across the country’s economy and public sector.

The initiative builds on earlier collaboration between Google and Singapore’s digital authorities and aims to support healthcare innovation, scientific research, workforce development, enterprise transformation, and AI governance. Officials said the partnership aligns with Singapore’s National AI Strategy and broader ambitions to position the country as a global AI hub.

A major focus of the collaboration involves healthcare and life sciences. Google DeepMind is exploring AI co-clinician systems with Singapore’s public healthcare sector, examining how AI agents could support doctors and patients throughout medical treatment and decision-making processes.

Google DeepMind will also collaborate with the National Research Foundation to train researchers on agentic AI systems designed to accelerate scientific discovery. Additional partnerships with the Agency for Science, Technology and Research will focus on AI-enabled research and secure cloud-based scientific analysis tools.

The agreement also expands AI deployment in education. Google and Singapore’s Ministry of Education plan to strengthen educator training programmes and integrate AI-powered teaching support tools across schools. Officials said the partnership aims to improve digital learning capabilities while supporting broader AI workforce readiness initiatives.

Singapore and Google additionally announced plans to collaborate on AI safety, governance, and cybersecurity frameworks. A joint initiative involving Cyber Security Agency of Singapore and other agencies is examining how AI agents interact with real-world digital systems and how governance rules should evolve around autonomous AI technologies.

Officials described the partnership as part of a wider effort to deploy frontier AI responsibly while supporting economic growth, public services, and digital transformation.

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New Zealand outlines public service reforms focused on digital systems and AI

New Zealand has announced public service reforms aimed at improving efficiency, reducing duplication and expanding digital systems across government operations.

Public Service Minister Paul Goldsmith outlined plans to streamline departments and expand the use of digital systems and AI in public administration. The government said the reforms respond to public sector growth that has increased in recent years.

The programme sets a target of returning the core public service to around 55,000 employees by 2029, reversing growth that saw staffing rise from approximately 47,000 in 2017 to more than 65,000 in 2023. According to officials, projected savings are intended to support areas including healthcare, education, infrastructure, and security.

Critics, including the Public Service Association, have raised concerns that the reforms could weaken service delivery and that AI and restructuring may not adequately replace experienced workers, warning of potential disruption across essential public services.

Why does it matter?

The reform reflects a shift towards ‘digital-first state capacity’, where governments attempt to maintain or improve service delivery while constraining headcount growth through automation, AI integration and organisational consolidation.

The approach signals an increasing reliance on data-driven and AI-enabled systems to offset labour intensity in back-office functions, while reallocating fiscal resources towards frontline services and infrastructure.

At the same time, it raises structural questions about institutional resilience, transition costs of large-scale digitisation, and whether productivity gains from AI can realistically substitute for experienced human capacity in complex public service environments.

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Australia’s WGEA outlines AI transparency rules for internal use

Australia’s Workplace Gender Equality Agency has published an AI transparency statement outlining how it uses AI internally, in line with the Digital Transformation Agency’s Policy for the Responsible Use of AI in Government.

The agency uses AI to enhance workplace productivity and support internal service delivery processes, including case management, in a controlled and human-centred manner. It does not use AI for statutory decision-making, compliance determinations, auditing outcomes or enforcement actions.

Internally, AI helps staff manage and respond to enquiries using approved information sources. All outputs are reviewed and approved by WGEA staff before use, and AI-generated material remains advisory only.

The agency does not use AI systems to interact directly with the public or make decisions affecting individuals without human involvement. External communications are reviewed and issued by WGEA staff.

The statement notes that AI does not change WGEA’s accountability for the accuracy, quality or appropriateness of information provided. The agency also monitors usage levels, outcomes and reporting mechanisms to ensure systems operate as intended and align with responsible AI principles.

WGEA designated its Chief Operating Officer as the accountable official on 19 December 2024. The role is responsible for ensuring AI use complies with relevant legislation, whole-of-government policy and internal governance arrangements.

Why does it matter?

The statement shows how public bodies are beginning to formalise transparency around internal AI use, even when systems are not used for direct public interaction or decision-making. By limiting AI to advisory functions, requiring human review and naming an accountable official, WGEA is setting out a practical governance model for low-risk public-sector AI use.

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South Korea expands industrial policy support for AI manufacturing technologies

South Korea’s Ministry of Trade, Industry and Resources announced plans to establish an industrial growth fund to support manufacturing AI transformation and other industrial policy initiatives over the next three years.

According to the ministry, private banks managing government research and development funds pledged combined anchor investments of 1.1 trillion won for the initiative, including 620 billion won from Hana Bank. The ministry said additional private-sector investment is expected to support the fund.

A M.AX innovation fund established under the initiative will support projects related to manufacturing AI transformation, including robotics, AI factories, mobility technologies, and autonomous vessels. According to the ministry, the government aims to raise 500 billion won for the sub-fund based on an initial 100 billion won anchor investment.

The ministry also signed a cooperation agreement with banks and related agencies to provide 700 billion won in financial support programmes, including technology guarantees and trade insurance, for companies participating in research and development projects.

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OpenAI integrates Codex into ChatGPT mobile app

OpenAI has integrated Codex into the ChatGPT mobile app, allowing users to monitor and manage agentic coding workflows from iOS and Android devices.

The feature, currently in preview and available across all plans, lets users view live Codex environments, review outputs, approve commands, change models, and start new tasks from their phones. OpenAI said the update is intended to support work across multiple threads and workflows, rather than to control a single task remotely.

Codex is OpenAI’s coding agent for software development, designed to help with tasks such as building features, refactoring code, generating pull requests, testing and documentation. OpenAI describes the Codex app as a command centre for agentic coding, with agents able to work in parallel across projects through worktrees and cloud environments.

The mobile integration aligns with other recent Codex updates, including background operations in desktop environments and a browser extension for live sessions. Together, the updates point to OpenAI’s effort to turn Codex into a persistent development assistant that can continue working across devices and environments.

The move also comes amid growing competition with Anthropic’s Claude Code, which has introduced similar remote-monitoring features. Both companies are competing to make agentic coding tools central to developer workflows, particularly for businesses and technical teams seeking more autonomous software development support.

Why does it matter?

Mobile access makes agentic coding less tied to a single workstation. If developers can review outputs, approve commands and manage parallel coding tasks from a phone, AI coding agents become more like always-on collaborators than occasional coding assistants. The shift could accelerate competition between OpenAI, Anthropic and other AI firms over who controls the next layer of software development workflows.

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Kazakhstan warns AI could displace up to 400,000 jobs

Kazakhstan’s Ministry of Labour and Social Protection has warned that widespread AI adoption could affect between 300,000 and 400,000 jobs over the next decade, highlighting concerns over structural shifts in the labour market.

First Vice-Minister Yerbol Tuyakbayev said the Workforce Development Centre is studying the potential impact of AI on the labour market. He said possible reductions could affect auxiliary and administrative roles, including accounting and some legal positions where tasks do not require direct human involvement.

At the same time, labour officials said demand remains strong for skilled technical and manual professions. The ministry pointed to current vacancies on the Enbek.kz platform and noted continued shortages in occupations requiring specialised practical expertise.

In response, the government has expanded retraining initiatives to help workers move into new roles. Tuyakbayev said around 186,000 people have already completed retraining programmes this year, including through regional initiatives and local centres such as JOLTAP in Astana.

Officials stressed that future employability and wages will depend heavily on qualification levels, as AI continues to reshape job structures and skills requirements across the economy.

Why does it matter?

Kazakhstan’s warning shows how governments are starting to treat AI as a labour-market transition issue, not only a productivity tool. The estimate points to potential pressure on routine administrative and professional roles, while also highlighting the need for retraining systems that can move workers into higher-demand technical and skilled occupations.

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Worldwide AI adoption surges, new report shows

Ireland remains one of the world’s leading markets for AI adoption, with 48.4% of its working-age population using AI tools, according to Microsoft’s Global AI Diffusion Report for the first quarter of 2026.

Microsoft said Ireland recorded a quarterly increase of 3.8 percentage points, placing it fourth globally and close to surpassing the 50% milestone. If current trends continue, Ireland could overtake Norway, which currently ranks third for AI adoption.

Globally, AI usage increased from 16.3% to 17.8% of the working-age population during the first quarter of 2026. Adoption remains uneven, with 26 economies now exceeding 30% usage, while the United Arab Emirates leads globally at 70.1%.

Regional trends show strong momentum in Asia, driven in part by improved AI capabilities for Asian languages. Microsoft said South Korea, Thailand and Japan recorded some of the greatest movement during the quarter.

At the same time, the gap between the Global North and Global South widened, with AI usage reaching 27.5% in developed regions compared with 15.4% elsewhere. Microsoft said it measures AI diffusion as the share of people aged 15 to 64 who used a generative AI product during the reported period.

Advances in AI-assisted coding also affected software development. Microsoft said global git pushes increased 78% year on year, while US software developer employment reached about 2.2 million in 2025 and was about 4% higher in March 2026 than in March 2025. The report cautions that it is still too early to determine the full labour-market impact of AI-assisted coding.

Why does it matter?

The report shows how quickly generative AI is becoming part of everyday work and digital activity, but also how uneven that adoption remains across countries and regions. If high-adoption economies continue to move faster, AI could widen existing digital and economic divides, especially where infrastructure, language support, skills and access remain weaker.

The findings also show why governments and businesses are under pressure to adapt workforce training, regulation and digital infrastructure as AI use spreads. Rising adoption may support productivity gains, but it also raises questions about who benefits, which regions fall behind and how labour markets adjust as AI tools become more embedded in software development and services.

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AI’s economic impact could redefine jobs and productivity trends

AI is increasingly being viewed as a potential general-purpose technology, similar to electricity, computers and the internet, with the capacity to reshape economies over time, according to Bank of Canada External Deputy Governor Michelle Alexopoulos.

Speaking at the Ottawa Economics Association and Canadian Association for Business Economics Spring Policy Conference, Alexopoulos said technological change usually unfolds gradually. Still, some innovations spread across industries and transform the wider economy. AI has developed over the past decades, but recent advances have accelerated adoption among people and businesses.

If AI becomes a general-purpose technology, it could eventually reshape jobs, improve productivity and make businesses more competitive, potentially leading to higher wages, lower costs for consumers and reduced inflationary pressure. Alexopoulos cautioned that forecasts will change as new information becomes available, but said AI’s potential effects on productivity, inflation and the labour market cannot be ignored.

Global uptake is expanding, though unevenly. Investment in AI data centres has risen sharply, particularly in the United States, while constraints such as power generation capacity and skills shortages continue to affect adoption. In Canada, adoption is gaining momentum but remains uneven across sectors, with some businesses saying AI does not yet meet their needs or that workers lack the required skills.

Early signs of modest productivity gains are emerging, as AI may allow economies to produce more goods and services without requiring people to work harder. Because productivity affects estimates of future economic growth, the Bank of Canada sees AI’s potential impact as relevant to monetary policy.

Labour-market effects remain mixed. Alexopoulos noted that some large technology firms have linked recent job cuts to AI, and studies show weaker hiring in highly exposed roles such as entry-level coding and customer service. However, she said the evidence so far does not show large-scale job losses, but rather that AI is transforming work tasks instead of replacing people.

Why does it matter?

AI’s possible emergence as a general-purpose technology could affect productivity, wages, inflation and labour demand over time. The Bank of Canada’s framing matters because it links AI adoption directly to macroeconomic policy, rather than just to business innovation. The central question is whether AI raises productivity broadly enough to support growth and lower costs, or whether uneven adoption deepens gaps between firms, sectors and workers.

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