Singapore leads Southeast Asia in AI exposure as new study highlights urgent need for re-skilling and human-centred AI policies.
SINGAPORE — Nearly 80 million workers across Southeast Asia are employed in occupations exposed to generative artificial intelligence (GenAI), yet there is currently little evidence that the rapidly evolving technology is causing widespread job displacement, according to a new report by the International Labour Organization (ILO).
The study, Generative AI and Labour Markets in ASEAN: Significant Exposure, Limited Disruption, Uneven Preparedness, examines how GenAI is reshaping labour markets across the 11-member Association of Southeast Asian Nations (ASEAN). While the technology has the potential to transform work on a large scale, the report concludes that employment disruption across the region remains limited at this stage.
Instead, the findings suggest that the greatest challenge for ASEAN is preparing workers, businesses and institutions for a future in which artificial intelligence increasingly augments everyday jobs.
RELEVANT SUSTAINABLE GOALS
Nearly 80 Million Jobs Already Exposed to Generative AI
The ILO found that approximately 80 million workers in Southeast Asia are employed in occupations with some degree of exposure to generative AI.
Despite this broad exposure, employment in occupations considered highly exposed to AI has continued to grow across the region.
“The potential for labour market transformation is significant, but widespread disruption is not yet visible,” the report stated.
The findings indicate that while AI technologies are advancing rapidly, businesses across ASEAN remain in the early stages of integrating generative AI into routine operations.
Singapore Records the Highest AI Exposure in ASEAN
The report highlights significant differences in AI exposure among ASEAN economies.
Among the nine member states with available data, Singapore recorded the highest proportion of workers employed in occupations with more than minimal exposure to generative AI, at 42.2%.
The Philippines ranked second with 28.1%, reflecting the country’s strong business services and information technology sectors. Indonesia followed at 21.7%, while Vietnam recorded 20.8% and Thailand 20.6%.
The varying levels of exposure reflect differences in industrial structure, workforce composition and digital development across Southeast Asia.
AI Adoption Remains Concentrated in Technology-Intensive Occupations
Although millions of jobs are technically exposed to generative AI, the report found that adoption remains uneven across industries. Implementation has so far been concentrated primarily in technology-intensive occupations. Office and administrative positions are among the occupations most exposed to generative AI. However, businesses have yet to adopt the technology widely enough in these roles to produce major labour market disruption.
According to the report, this suggests that many employers are still experimenting with how generative AI can be integrated into everyday workflows rather than replacing existing jobs outright.
The study also found little difference in AI exposure between younger workers aged 15 to 24 and older employees.
Women Face Greater Exposure Than Men
One of the report’s most notable findings is the gender imbalance in AI exposure.
Women are more than twice as likely as men to work in occupations with high exposure to generative AI.
The report attributes this difference largely to the concentration of women in clerical, administrative and professional occupations that are increasingly susceptible to AI augmentation.
Rather than indicating immediate job losses, the finding highlights the importance of ensuring women have access to reskilling and upskilling opportunities as workplaces continue adopting AI technologies.
ASEAN’s Readiness for AI Differs Widely
While exposure to generative AI is increasing throughout Southeast Asia, the ILO warned that countries across the region are not equally prepared to manage the technology’s impact.
Singapore was identified as ASEAN’s most advanced AI ecosystem, supported by strong digital infrastructure, a highly skilled workforce and coordinated government policies that encourage AI adoption.
Other ASEAN economies face greater challenges in strengthening workforce readiness, expanding digital capabilities and developing institutional support needed for an AI-enabled economy.
The report suggests that differences in preparedness could significantly influence how successfully countries adapt to technological change over the coming years.
Human Capital and Policy Will Shape the Future of Work
The ILO said maximizing the benefits of generative AI will require governments and businesses to invest in people alongside technology.
The organization called for greater investment in human-centred AI governance, expanded reskilling and upskilling programmes, particularly for women and young workers, stronger support for micro, small and medium-sized enterprises (MSMEs), and closer regional cooperation on workforce development.
“Harnessing the benefits of GenAI requires more than access to technology,” said Christian Viegelahn, ILO economist and lead author of the report.
“Productivity gains depend on investments in human capital and social protection. Ultimately, future labour market outcomes will depend less on exposure alone than on the policy choices to build the preparedness and resilience of workers, enterprises and institutions.”
AI’s Impact Will Depend on How ASEAN Prepares Today
The report concludes that generative AI has the potential to reshape millions of jobs across ASEAN, but technology alone will not determine future labour market outcomes.
Instead, the long-term impact will depend on how effectively governments, employers and education systems prepare workers to adapt to an increasingly AI-enabled economy.
As generative AI continues to evolve, the ILO’s findings suggest that investment in skills, workforce resilience and inclusive policies may prove just as important as technological innovation itself in determining Southeast Asia’s economic future.
