The AI Wave Sweeps Latin America: Opportunities and Challenges Await

The AI Wave Sweeps Latin America: Opportunities and Challenges AwaitA recent joint report by the International Labour Organization (ILO) and the World Bank sheds light on the impact of Artificial Intelligence (AI) on the labor market in Latin America and the Caribbean. The report highlights that between 2% and 5% of jobs in the region are at risk of being fully automated, meaning these roles could be replaced by AI technology

The AI Wave Sweeps Latin America: Opportunities and Challenges Await

A recent joint report by the International Labour Organization (ILO) and the World Bank sheds light on the impact of Artificial Intelligence (AI) on the labor market in Latin America and the Caribbean. The report highlights that between 2% and 5% of jobs in the region are at risk of being fully automated, meaning these roles could be replaced by AI technology. This trend is particularly noticeable among women and young workers in the formal sector, who are more susceptible to the impact of generative AI.

The report emphasizes that Latin America and the Caribbean, being one of the most unequal regions globally, are characterized by widespread low-wage jobs in the informal economy, exacerbating the potential risks posed by AI. Due to inadequate social protection systems and skills training programs, a large number of low-skilled workers face the threat of unemployment amidst the AI wave.

However, the report also points out that the digital infrastructure gap and other inequalities may limit the potential impact of generative AI in the region. This implies that while AI technology might have a greater impact in developed countries, Latin America and the Caribbean can, to some extent, mitigate the negative effects by bridging the digital divide and enhancing worker skills.

Beyond potential risks, the report highlights the positive aspects of AI. AI technology has the potential to boost productivity for 8% to 14% of jobs, particularly in urban areas, education, and the formal sector, with higher earners benefiting more.

Overall, between 26% and 38% of jobs in Latin America and the Caribbean are likely to interact with generative AI and experience some degree of impact.

Faced with the opportunities and challenges presented by AI technology, Latin America and the Caribbean need to take proactive steps including strengthening digital infrastructure, investing in education and skills training, improving social protection systems, and developing policies to guide the healthy development of AI. Only then can the region maximize the benefits of AI while avoiding its negative consequences, ultimately achieving inclusive growth that allows all citizens to reap the rewards of AI technology.