For the umpteenth time, the World Bank and the International Monetary Fund (IMF) have warned that artificial intelligence (AI) could transform or eliminate about 40 per cent of jobs worldwide, urging governments to invest in skills, infrastructure and new employment opportunities to protect workers, especially young people.
World Bank Group President, Ajay Banga, said the growing number of young people entering the labour market presented a major opportunity for developing countries, but only if governments could provide the education, healthcare, skills and economic opportunities needed to make them productive.
Speaking at a panel discussion involving the IMF Managing Director, Kristalina Georgieva, and Singapore President, Tharman Shanmugaratnam, Banga said the World Bank had made job creation central to its development strategy.
He said about 1.2 billion young people would reach the age of 18 over the next 15 years, making it critical for developing countries to create enough opportunities to absorb them into productive employment.
According to him, jobs should not be limited to formal employment in large or small companies, but should include entrepreneurship and other activities that give people the opportunity to earn a living and contribute meaningfully to society.
Banga said governments must provide essential infrastructure, including roads, electricity, water, schools and healthcare facilities, while establishing sound policies that would encourage private investment.
He noted that the private sector generated between 75 and 85 per cent of jobs in most countries, stressing that governments must create the right conditions for businesses to invest and expand.
On the role of AI, Banga said developing countries should focus on practical, affordable applications that could improve productivity in agriculture, healthcare, education and other sectors, rather than concentrate solely on large AI systems.
He explained that simple AI tools could help small farmers identify crop diseases, access better seeds and fertilisers, obtain credit and insurance, and secure better prices for their produce.
Similarly, healthcare workers could use basic digital tools to consult doctors remotely, identify possible illnesses and arrange specialist appointments for patients who might otherwise struggle to access such services.
Banga added that these applications could improve productivity and create employment opportunities, particularly in countries where access to advanced technology and specialised services remained limited.
He identified infrastructure, agriculture, primary healthcare, tourism and manufacturing as five sectors with significant potential to generate jobs in developing economies.
He also highlighted opportunities in Africa’s creative industries, urging countries to develop local businesses and industries rather than depend mainly on jobs outsourced from advanced economies.
Singapore President Shanmugaratnam, however, warned that economic growth alone would not guarantee enough jobs, pointing to countries in Asia that had recorded strong growth without a corresponding increase in employment.
He said AI could widen the gap between economic growth and job creation if governments failed to take deliberate action.
Shanmugaratnam cautioned that the technology could put pressure on middle-income workers whose skills and jobs might be affected by automation, making it necessary for governments to prepare workers for changing demands
