ARTIFICIAL INTELLIGENCE AND LABOR MARKET TRANSFORMATION IN DEVELOPING COUNTRIES

Sevinch Rakhimjonovna Nortojiyeva · Zenodo (CERN European Organization for Nuclear Research) · 31 May 2026

Where this sits in the debate

Will AI destroy more jobs than it creates? · its finding: it depends (why studies differ)

Direction of the finding as read from the abstract by an AI model (AI-written).

Key takeaway AI-written

A literature-based review (drawing on ILO, World Bank, OECD, IMF, and WEF reports) on how AI is reshaping labor markets in developing countries, concluding that AI creates both job displacement and demand for new skills, with outcomes depending heavily on education and labor-market policy. It's descriptive synthesis rather than new empirical evidence, but contributes a Global South framing often underrepresented in the AI-economics literature.

The paper in three steps AI-written

Written by an AI agent from the paper's abstract, which is the primary source and is quoted below.

The question

How is AI changing labour markets in developing countries?

The approach

A review of reports and empirical findings published by the ILO, World Bank, OECD, IMF and World Economic Forum on employment trends, workforce adaptation, productivity and policy.

The findings

AI may automate routine tasks and threaten some occupations while creating demand for new skills and jobs, with gains for development depending on education and labour policies.

How to read it: review. A synthesis of existing studies — breadth over novelty; quality depends on what it includes and excludes.

Limitations and counterpoints AI-written

Relies on secondary reports rather than new data, and the abstract gives no quantitative estimates or country-level detail.

Abstract

Artificial Intelligence (AI) has emerged as one of the most transformative technologies of the twenty-first century, significantly influencing economic development, productivity growth, and labor market dynamics worldwide. While developed economies have been at the forefront of AI adoption, developing countries are increasingly experiencing both opportunities and challenges associated with the integration of AI technologies into various sectors. The impact of AI on labor markets in developing countries is complex, involving job creation, job displacement, changes in skill requirements, and shifts in employment structures. This article examines the transformation of labor markets in developing countries under the influence of AI, focusing on employment trends, workforce adaptation, productivity improvements, and policy implications. The study is based on reports and empirical findings published by international organizations, including the International Labour Organization (ILO), World Bank, Organisation for Economic Co-operation and Development (OECD), International Monetary Fund (IMF), and the World Economic Forum (WEF). The findings indicate that while AI may automate routine tasks and threaten certain occupations, it simultaneously creates demand for new skills and occupations, offering significant opportunities for economic development if supported by effective educational and labor policies.

About this publication

Preprint. A preprint — posted publicly before or without journal peer review; findings may still be revised.

Published: 2026 (5 months ago)
Citations: 0 (OpenAlex)