AI impact on jobs: World Bank, ILO warn of widening global inequality
A new global study by the World Bank and the International Labour Organization has raised fresh concerns over the AI impact on jobs, warning that while artificial intelligence could unlock productivity gains, its benefits may be unevenly distributed across economies.
The joint working paper, prepared as part of the World Development Report 2026, examined labour market exposure to generative AI across 135 countries, representing a significant share of global employment.
Its findings suggest that disparities in digital access, workforce skills, and job structures will determine how countries experience the AI revolution.
Advanced economies face higher AI exposure
According to the report, developed economies are more exposed to generative AI due to the nature of their labour markets. Jobs in administrative, clerical, and professional categories—common in high-income countries—are particularly vulnerable to automation and augmentation by AI systems.
This elevated exposure means that while productivity could improve significantly, there is also a higher risk of job displacement in certain sectors. Roles involving repetitive cognitive tasks are especially susceptible, as AI tools increasingly demonstrate the capacity to perform such functions efficiently.
However, experts note that advanced economies are better positioned to adapt due to stronger institutions, higher digital literacy, and more robust social protection systems.
Developing nations face structural limitations
In contrast, developing countries—including Nigeria—face a different dimension of the AI impact on jobs. While overall exposure to automation is lower, structural challenges could limit the ability of these economies to benefit from AI-driven productivity gains.
The report highlights that many workers in low- and middle-income countries are concentrated in informal, manual, or routine roles that are less directly affected by generative AI. However, this does not necessarily translate into an advantage.
Instead, it underscores a critical gap: workers in these economies often lack access to the digital infrastructure and tools required to leverage AI technologies effectively. Limited internet connectivity, inadequate digital skills, and insufficient technological investment all constrain potential gains.
Digital divide emerges as key risk factor
A major theme in the study is the growing digital divide, which is expected to shape the global AI impact on jobs. The report notes that even in developing countries, some vulnerable workers are already engaged in online tasks, making them susceptible to automation.
At the same time, those in roles with the greatest potential for productivity improvement often lack reliable internet access or digital tools. This paradox could widen inequality, as opportunities created by AI remain concentrated among a smaller segment of the workforce.
The study also points out that job roles differ significantly across countries, even when titles appear similar. Workers in lower-income regions tend to perform fewer analytical and computer-based tasks, reducing the scope for AI to enhance productivity in those roles.
Women and youth face higher risks
The report pays particular attention to the implications for women and young workers. Clerical and administrative roles—often entry points into formal employment—are among the most exposed to AI disruption.
In many developing economies, these jobs have historically provided pathways to stable income and career progression, especially for women. Their potential erosion could have broader social and economic consequences if alternative opportunities are not created.
This dynamic reinforces concerns that the AI impact on jobs may not only be uneven across countries but also across demographic groups within the same economy.
Policy action critical to inclusive outcomes
The World Bank and International Labour Organization emphasised that the ultimate impact of AI will depend heavily on policy choices. Governments are urged to adopt proactive strategies to ensure inclusive benefits.
Key recommendations include expanding digital infrastructure, investing in education and skills development, and strengthening labour market institutions. Social protection systems must also be enhanced to support workers transitioning between roles in an AI-driven economy.
“The potential of generative AI is immense, but without inclusive policies, it risks deepening inequalities in the global labour market,” the report warned.
Nigeria positions for AI-driven future
Nigeria has already begun laying the groundwork to navigate the AI impact on jobs, with the introduction of a National Artificial Intelligence Strategy aimed at promoting inclusive and ethical innovation.
The initiative, driven by agencies such as the National Information Technology Development Agency, focuses on building digital infrastructure, fostering local talent, and integrating AI across key sectors including healthcare, agriculture, and education.
A key component of the strategy is human capital development, with programmes targeting millions of young Nigerians for AI literacy and digital skills training. There is also a strong emphasis on inclusion, particularly for women and underserved communities.
Startups like Intron Health are already demonstrating the potential of locally developed AI solutions, particularly in sectors such as healthcare and finance.
Balancing innovation with equity
While the global momentum around AI continues to build, the report underscores the importance of balancing innovation with equity. Without deliberate interventions, the benefits of AI could remain concentrated in already advantaged economies and populations.
For Nigeria and similar economies, the challenge will be to bridge existing gaps while positioning themselves to harness emerging opportunities. This will require coordinated efforts across government, private sector, and international partners.
As the world transitions into an AI-driven era, the conversation is no longer just about technological advancement but about ensuring that progress translates into shared prosperity.
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