## How Artificial Intelligence Will Affect Asia’s Economies

_IMF Blog, January 5, 2025_

## Source details

**Canonical URL:** [How Artificial Intelligence Will Affect Asia’s Economies](https://www.imf.org/en/blogs/articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies)

## Other formats

- [Markdown version](/en/blogs/articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies/index.md)
- [Structured JSON version](/en/blogs/articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies/index.json)
- [Bundle manifest](/en/blogs/articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies/bundle-manifest.json)

## Bibliographic details
- Authors: Tristan Hennig, Shujaat Khan
- Published: January 5, 2025

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### Overview
- Authors: Tristan Hennig, Shujaat Khan
- Date: January 5, 2025
- Core message: AI will cause labor market shifts across Asia-Pacific, with advanced economies more affected; policy action can reduce inequality risks and enhance inclusive gains.

### Major findings
- Exposure and complementarity
  - About half of all jobs in the region’s advanced economies are exposed to AI, compared to only about a quarter in emerging market and developing economies.
  - Advanced economies have more jobs that can be complemented by AI, meaning the technology will likely enhance productivity rather than replace these roles altogether.
- Cross-country inequality risks
  - Concentration of AI-complementary jobs in advanced economies could worsen inequality between countries over time.
  - About 40 percent of jobs in Singapore are rated as highly complementary to AI, the share is just 3 percent in Laos.
- Within-country inequality risks
  - Most workers at risk of displacement in the Asia-Pacific region work in service, sales, and clerical support roles.
  - Workers more likely to benefit from AI typically work in managerial, professional, and technician roles that already tend to be among the better paid professions.
- Gendered impacts
  - Women are more likely to be at risk of disruption from AI because they are more often in service, sales, and clerical roles.
  - Men are more represented in occupations unlikely to be impacted by AI at this stage, like farm workers, machine operators, and low-skill elementary workers.

### Policy recommendations
- Strengthen social protection
  - Implement more effective social safety nets to support workers affected by AI-induced disruption.
- Invest in reskilling and education
  - Combine social safety nets with reskilling programs for affected workers to achieve an inclusive AI transition.
  - Prioritize education and training to help the workforce leverage AI’s productivity gains, especially in Asia’s emerging economies with relatively few AI-complementary jobs.
  - Support displaced workers’ transitions to new roles and boost research and development to enhance innovation.
- Regulate for ethical use and data protection
  - Set regulations that promote ethical AI use and data protection to mitigate AI-induced risks and better capitalize on growth and productivity opportunities.

*This blog is based on Box 1 of the analytical note included in the October 2024 Asia-Pacific Regional Economic Outlook.*

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## Content in this bundle

- **APD REO Note: Asia-Pacific's Structural Transformation: The Past and Prospects**
  - [APD REO Note: Asia-Pacific's Structural Transformation: The Past and Prospects (Markdown version)](/-/media/files/publications/reo/apd/2024/october/english/reoapdnote.pdf.md){rel="alternate" type="text/markdown"}
  - [APD REO Note: Asia-Pacific's Structural Transformation: The Past and Prospects (PDF)](/-/media/files/publications/reo/apd/2024/october/english/reoapdnote.pdf){rel="external" type="application/pdf"}

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## References

- [Regional Economic Outlook](https://www.imf.org/en/Publications/REO/APAC/Issues/2024/10/31/regional-economic-outlook-for-asia-and-pacific-october-2024)
- [labor market implications](https://www.imf.org/en/Blogs/Articles/2024/01/14/ai-will-transform-the-global-economy-lets-make-sure-it-benefits-humanity)
- [equipped for AI adoption](https://www.imf.org/en/Blogs/Articles/2024/06/25/mapping-the-worlds-readiness-for-artificial-intelligence-shows-prospects-diverge)

_Source: https://www.imf.org/en/blogs/articles/2025/01/05/how-artificial-intelligence-will-affect-asias-economies_