ASIATODAY.ID, BANGKOK – Generative artificial intelligence (GenAI) is set to reshape Southeast Asia’s labour market, with nearly 80 million workers across ASEAN expected to experience the impact of AI-driven transformation.
However, a new report by the International Labour Organization (ILO) shows that AI has not yet triggered large-scale job losses, indicating that the technology is more likely to transform existing roles, redefine skills requirements and reshape productivity rather than immediately replace human workers.
The ILO report, “Generative AI and Labour Markets in ASEAN: Significant Exposure, Limited Disruption, Uneven Preparedness,” examines how GenAI could affect employment patterns across ASEAN’s 11 member states, including job exposure levels, adoption trends and workforce readiness.
According to ILO estimates for 2025, around 22.9% of ASEAN workers — equivalent to nearly 80 million people — are employed in occupations with exposure to GenAI above the minimum threshold.
Yet only 3.3% of the region’s workforce, or approximately 11.7 million workers, are in occupations with the highest level of exposure to AI technologies.
Meanwhile, around 67% of ASEAN workers remain in occupations where significant GenAI exposure has not been identified.
Indonesia Faces New Workforce Challenge as AI Adoption Accelerates
Among nine ASEAN countries with available data, Singapore recorded the highest proportion of workers exposed to GenAI above the minimum threshold, at 42.2%, reflecting its advanced digital infrastructure, technology ecosystem and strong AI strategy.
The Philippines followed with 28.1%, supported by its large service sector and information technology industry.
Indonesia recorded 21.7% of workers exposed to GenAI, placing the country among ASEAN economies entering a new phase of AI-driven economic transformation.
As Southeast Asia’s largest economy and one of the region’s fastest-growing digital markets, Indonesia faces a dual challenge: accelerating AI adoption while ensuring that millions of workers gain the skills needed to remain competitive in the future economy.
AI Expected to Transform Jobs Rather Than Replace Workers
The ILO report emphasizes that while AI has significant potential to reshape labour markets, there is currently no evidence of widespread employment disruption caused by GenAI.
“The potential for labour market transformation is significant, but major employment disruption has not yet emerged,” the report stated.
Across ASEAN, GenAI adoption remains at an early and uneven stage. Current use is concentrated mainly in technology-intensive occupations, while administrative and office-based jobs — despite having relatively high exposure potential — have yet to experience broad AI adoption.
The report suggests that the impact of AI will depend largely on how governments, businesses and workers manage the transition.
Women Face Higher Exposure to AI-Driven Workplace Changes
The study also highlights a significant gender dimension in AI exposure.
Women are more than twice as likely as men to work in occupations with high GenAI exposure, largely because of their concentration in administrative, secretarial and professional service roles.
Meanwhile, younger workers aged 15–24 and older workers show relatively similar exposure levels to GenAI, suggesting that AI transformation will affect multiple generations of the workforce.
ASEAN’s AI Readiness Gap Remains a Major Challenge
Despite rapid digital growth, ASEAN continues to face a significant preparedness gap in adopting AI technologies.
The ILO identifies differences among countries in digital infrastructure, availability of skilled talent, business readiness and institutional capacity as key factors determining how effectively economies can benefit from AI.
Singapore has emerged as a regional benchmark due to its combination of advanced digital infrastructure, strong technology talent and comprehensive government-led AI policies.
However, many ASEAN economies still need stronger investment in workforce development, digital inclusion and support for small and medium-sized enterprises seeking to adopt AI.
Building a Human-Centred AI Economy
To ensure AI becomes a driver of inclusive growth, the ILO recommends several priorities for ASEAN countries:
– Developing human-centred AI governance frameworks;
– Expanding upskilling and reskilling programmes;
– Supporting micro, small and medium enterprises (MSMEs) in adopting AI;
– Strengthening regional cooperation in skills development and knowledge exchange.
“Realizing the benefits of GenAI requires more than simply access to technology,” said Christian Viegelahn, ILO Economist and lead author of the report.
“Productivity gains depend on investments in human capital and social protection. Ultimately, the future of work will be shaped more by policy choices that build worker, enterprise and institutional readiness than by AI exposure alone,” he said.
Indonesia’s Strategic Moment in the AI Economy
For Indonesia, the AI transition represents both a major opportunity and a strategic challenge.
The country’s ability to expand digital skills, strengthen innovation capacity and help businesses adopt AI technologies will determine whether artificial intelligence becomes a driver of inclusive economic growth or deepens existing skills gaps.
As ASEAN moves toward an AI-powered economy, the competition will no longer be defined only by technology adoption, but by the ability to prepare people for a rapidly changing world of work. (AT Network)
Follow Us at Google News, Instagram, WA Channel, and LinkedIn