A new report released by the International Labour Organization and the World Bank has warned that generative artificial intelligence (GenAI) could disrupt jobs in developing countries faster than it delivers benefits, largely due to limited digital access and weak infrastructure. The findings were presented in a joint working paper prepared for the World Development Report 2026, covering 135 countries and approximately two-thirds of global employment.
The organisations noted that, while AI is expected to reshape labour markets worldwide, its effects will be uneven. Advanced economies are more exposed to AI, particularly in clerical and professional occupations, yet developing nations may face greater difficulty translating this exposure into productivity gains, heightening the risk of job losses and widening inequality.
According to the report, disparities in digital infrastructure and the structure of work are critical factors in determining how countries experience AI. Although exposure to GenAI is higher in advanced economies, developing countries face structural constraints that limit their ability to harness the technology’s advantages.
The organisations highlighted the widening digital divide as a major concern. Many workers in roles vulnerable to automation are already online, even in low-income countries, meaning job disruption could occur rapidly. These roles, including clerical and administrative positions, often provide stable employment pathways, particularly for women and young people.
The report cautioned that AI-driven automation could close off these important routes to decent work. At the same time, many workers who could benefit from productivity improvements enabled by AI lack reliable internet access, limiting their ability to take advantage of the technology.
It further observed that, even where job titles are similar across countries, the actual tasks performed differ. Workers in lower-income countries are more likely to undertake routine or manual duties and rely less on digital tools, reducing their prospects of benefiting from AI-driven productivity gains.
Overall, the report concluded that the impact of GenAI on employment will depend not only on the technology itself, but also on internet access, workforce skills, and how work is organised. It called for stronger policies to expand digital connectivity, develop skills, and strengthen labour systems to ensure that the benefits of AI are distributed more equitably.
