AI automation affects job prospects in Latin America

AI automation affects job prospects in Latin America is profiled by BTW Media because published evidence links it to internet infrastructure, governance, operational dependencies, or market visibility.

• Some 2% to 5% of jobs in Latin America and the Caribbean are at risk of being replaced by AI automation, mainly affecting women and young workers.
• Despite the potential risks, AI has the potential to increase the productivity of between 8% and 14% of jobs, especially in urban and educational areas.

OUR TAKE
A new report by the International Labour Organisation (ILO) and the World Bank highlights the proportion of jobs in Latin America and the Caribbean that face the threat of automation by AI, especially for women and young workers. The report also notes that despite this risk, AI has the potential to increase the productivity of between 8% and 14% of jobs, particularly in the urban and educational areas. This finding emphasises the potential dual impact of AI in the region with the potential to lead to both increased efficiency and productivity.
-Rae Li, BTW reporter

What happened

A report by the ILO and the World Bank reveals the percentage of jobs in Latin America and the Caribbean that face the threat of AI automation, noting that between 2% and 5% of jobs can be influenced by full automation, especially for women and young workers. In particular, the report mentions that women and young workers are at greater risk in the formal sector, where their tasks could be replaced by generative AI, which could exacerbate the inequality that exists in the region as a result of low-paying jobs in the extensive informal economy.

The report indicates that digital infrastructure gaps and other inequalities can hinder the potential impact of generative AI in the region. According to the report, about 26% to 38% of jobs in Latin America and the Caribbean can be affected by generative AI. However, the report notes that AI has the potential to increase productivity in between 8% and 14% of jobs. This suggests that despite the potential risks, AI can also have positive impacts which is increased efficiency and productivity.

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Why it’s important

The report by the ILO and the World Bank highlights the risk of AI automation facing Latin America and the Caribbean, which has important implications for understanding how technological advances are affecting labour markets. The report notes that while only 2% to 5% of jobs are at risk of being replaced by full automation, this figure can have significant socio-economic implications for a region that already faces high inequality and a low-paying informal economy. It can exacerbate existing inequalities, which will require attention and responses from policymakers and all sectors of society.

At the same time, the application of AI technologies has the potential not only to reduce the need for certain jobs, but also to create new employment opportunities and economic growth by increasing efficiency and productivity. Thus, for Latin America and the Caribbean, the key is to balance the challenges and opportunities presented by technological advances and to develop sound policies and educational programmes that promote inclusive growth and labour market adaptation.