Singapore: Generative artificial intelligence (GenAI) is expected to reshape the future of work across Southeast Asia, with nearly 80 million workers in ASEAN employed in occupations that have at least some level of exposure to AI technologies, according to a new report released by the International Labour Organization (ILO).
Despite the growing influence of AI, the report concludes that widespread labour market disruption has not yet materialised. Instead, it suggests that the technology is more likely to transform jobs than replace them outright, provided governments and businesses invest in workforce preparedness.
Nearly One in Four Workers Exposed to AI
The report estimates that 22.9% of total employment in ASEAN, representing nearly 80 million workers, is employed in occupations with more than minimal exposure to generative AI.
However, only 3.3% of the workforce, or around 11.7 million people, work in occupations classified as having the highest level of AI exposure.
Meanwhile, approximately 67% of workers remain employed in occupations that currently show little or no direct exposure to generative AI technologies.
These findings indicate that although AI is expected to influence many industries, the majority of jobs across the region remain relatively insulated from immediate disruption.
Singapore Leads ASEAN in AI Exposure
Among the nine ASEAN countries included in the study, Singapore recorded the highest proportion of workers employed in occupations exposed to generative AI.
The report found that:
- Singapore: 42.2% of workers have more than minimal AI exposure
- Philippines: 28.1%
- Indonesia: 21.7%
- Vietnam: 20.8%
- Thailand: 20.6%
Singapore’s leading position reflects its advanced digital economy, highly skilled workforce, and strong adoption of technology across industries.
The Philippines also ranks high due to its large services sector and globally competitive information technology and business process outsourcing (IT-BPO) industry.
AI Is Transforming Jobs, Not Replacing Them
According to the ILO, employment in highly AI-exposed occupations has continued to grow across ASEAN despite increasing adoption of generative AI technologies.
The report notes that AI implementation remains at an early stage, with adoption primarily concentrated in technology-intensive occupations. Administrative and office-based roles, although highly exposed, have yet to experience significant disruption due to relatively limited AI deployment.
The study concludes that the potential for labour market transformation is substantial, but widespread job displacement is not yet evident.
Women Face Higher AI Exposure
One of the report’s key findings is a notable gender gap in AI exposure.
Women are more than twice as likely as men to work in occupations with high exposure to generative AI, largely because they are more heavily represented in clerical, administrative, and professional roles where AI tools are increasingly being introduced.
The report also found that younger workers aged 15 to 24 and adult workers experience broadly similar levels of occupational exposure to AI.
Preparedness Varies Across ASEAN
The report highlights significant differences in AI readiness among ASEAN member states.
Singapore stands out as the region’s most advanced AI ecosystem, supported by:
- Strong digital infrastructure
- High availability of AI talent
- Comprehensive government-led AI strategies
- Robust innovation ecosystem
Other ASEAN economies continue to face challenges in infrastructure, workforce skills, and enterprise adoption, creating what the report describes as a growing “preparedness gap.”
ILO Calls for Human-Centred AI Policies
To ensure AI contributes to inclusive economic growth, the ILO recommends that governments prioritise:
- Human-centred AI governance
- Large-scale upskilling and reskilling programmes
- Greater investment in women and youth workforce development
- Support for micro, small, and medium enterprises (MSMEs) adopting AI
- Stronger regional collaboration on AI skills and workforce development
The organisation argues that future labour market outcomes will depend less on technology itself and more on policy decisions that prepare workers and businesses for AI adoption.
Human Capital Will Determine AI Success
Christian Viegelahn, Economist at the International Labour Organization and lead author of the report, emphasised that technology alone will not determine economic outcomes.
He noted that productivity gains from generative AI will depend on continued investment in human capital, workforce resilience, and social protection systems that help workers adapt to changing job requirements.
According to the report, building AI-ready institutions and supporting workforce transition will be essential for ensuring that AI creates new opportunities rather than widening existing inequalities.
ASEAN Enters the Next Phase of AI Adoption
The report, titled “Generative AI and Labour Markets in ASEAN: Significant Exposure, Limited Disruption, Uneven Preparedness,” offers one of the most comprehensive assessments of AI’s impact on employment across the region.
While the findings suggest that mass job losses are unlikely in the near term, they reinforce the growing importance of proactive AI governance, digital skills development, and coordinated policy frameworks as ASEAN economies prepare for the next wave of technological transformation.
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Ruchi Kumar is the associate editor at Entrepreneur News Network and TVW News India, where she leads editorial strategy, brand storytelling, and startup ecosystem coverage. With a strong focus on innovation, business, and marketing insights, he curates impactful narratives that spotlight India’s evolving entrepreneurial landscape. She has written extensively on fintech, AI and emerging startups.