AI reshapes South Asia’s jobs, creating risks and new opportunities
Summary
Artificial intelligence is reshaping South Asia’s labour markets, slowing hiring in some sectors while creating new opportunities in outsourcing and IT services. The World Bank says AI could boost productivity and exports, but governments must close foundational gaps to capture the benefits.
Key Points
- A new World Bank report says AI adoption is already affecting jobs and firms across South Asia, especially in BPO and ICT sectors.
- The report warns that foreign companies may use AI to reshore work previously outsourced to South Asian suppliers, reducing demand for some tasks.
- At the same time, AI is creating demand for workers with AI-related skills and opening new opportunities in higher-value services.
- Nepal’s tech sector should focus on AI-complementary skills to expand IT service exports, according to former NAS-IT president Gaurav Raj Pandey.
