- Women and younger workers in formal sectors are particularly vulnerable to losing their jobs to AI technologies in Latin America and the Caribbean.
- AI has the potential to increase productivity in 8% to 14% of jobs, especially in urban areas, education, and higher-income professions.
OUR TAKE
The adoption of AI in Latin America could lead to a mixed outcome, with potential benefits in productivity and economic growth but also risks of exacerbating existing inequalities due to digital gaps in the region. Governments and organisations need to focus on bridging these divides to ensure a balanced and inclusive economic transformation.
-Lia XU, BTW reporter
What happened
According to a joint report by the International Labor Organization and the World Bank, AI could potentially eliminate up to 5% of jobs in Latin America and the Caribbean. The impact of this question could be extensive. Because gaps in digital infrastructure and existing inequalities might curb the full impact of AI. First of all, between 26% to 38% of jobs in the region are exposed to AI’s influence. However, AI also has the potential to boost productivity in 8% to 14% of jobs, especially in urban settings, education, and higher-income professions.
Besides, some demographic groups like women and younger workers in formal sectors are particularly vulnerable to losing their jobs to AI technologies in Latin America and the Caribbean. So some sectors like tech-savvy urban areas, education, and higher-wage jobs may experience productivity surges due to AI adoption, while industries heavily reliant on the formal employment of women and young workers might face automation challenges.
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Why it’s important
On the one hand, the adoption of AI in Latin America and the Caribbean could lead to significant shifts in markets. Sectors such as tech-savvy urban areas, education, and higher-wage jobs might experience productivity surges.
On the other hand, while AI adoption can boost productivity and economic growth, it may also worsen existing inequalities due to digital gaps in the region. Bridging these divides is crucial for a balanced and inclusive economic transformation. For example, industries heavily reliant on the formal employment of women and young workers could be the first to face automation challenges, requiring caution from investors.
To address these challenges and ensure a balanced economic transformation, governments and organisations need to focus on proactively managing this transition to mitigate the potential negative impacts of AI on the job market in Latin America and the Caribbean.
