Artificial intelligence and the future of work : evidence and policy guidelines for developing economies

This article offers a comprehensive review of Artificial Intelligence's (AI) effects on global labour markets, with a particular focus on developing economies. Drawing on an extensive body of evidence, it demonstrates that AI's disruptive potential diverges markedly from earlier waves of automation, extending its reach into occupations once deemed insulated-especially those demanding advanced education and complex cognitive abilities. The analysis reveals significant heterogeneity in AI exposure across countries at different development stages and among workers distinguished by skill sets, educational attainment, age, and gender, underscoring its unequal distributional consequences. To harness AI's benefits while safeguarding vulnerable groups, we propose four strategic policy levers: bolstering digital infrastructure, expanding vocational training and lifelong upskilling programmes, formalising labour markets, and integrating AI tools within social protection delivery. Collectively, these measures foster a human centred adoption of AI, bridge the digital divide, and promote inclusive growth, thereby mitigating adverse impacts on employment and wages.