Generative artificial intelligence (GenAI) is poised to reshape millions of jobs across Southeast Asia, with its effects expected to fall disproportionately on women and new workers entering the labour force, according to a report by the International Labour Organization (ILO).
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The report, Generative AI and labour markets in Asean: Significant exposure, limited disruption, uneven preparedness, estimates that nearly 80 million workers across the Association of Southeast Asian Nations (Asean), or 22.9 per cent of total employment, are in occupations with more than a minimal degree of potential exposure to generative AI disruption.
However, only 3.3 per cent of the workforce, or 11.7 million workers, are employed in occupations classified in the highest exposure category, while around two-thirds of jobs remain in occupations with no identified exposure to the technology.
The findings suggest that GenAI is more likely to reshape the tasks workers perform than replace entire occupations. However, its impact will vary widely depending on each country’s level of digital readiness, workforce skills and labour market institutions.
“Harnessing the benefits of GenAI requires more than access to technology,” said Christian Viegelahn, ILO economist and lead author of the report.
“Productivity gains depend on investments in human capital and social protection. Ultimately, future labour market outcomes will depend less on exposure alone than on the policy choices to build the preparedness and resilience of workers, enterprises and institutions.”
Women, young workers face greater exposure
The report identifies women as the group most exposed to GenAI across the region due to their concentration in clerical, administrative and some professional occupations where AI can automate or transform a larger share of tasks.
Across Asean, 4.8 per cent of women work in occupations with the highest levels of GenAI exposure in 2025, compared with 2.3 per cent of men. The gender gap is widest in Thailand and the Philippines, where women are around three to four times more likely than men to work in highly exposed occupations.
While overall exposure levels are broadly similar between young people aged 15 to 24 and older adults, the report identifies early warning signs for younger workers entering the labour market.
“Several indicators point to slower growth or declining employment among young workers in highly exposed occupations and entry-level jobs,” the report said.
The report found that young workers are slightly more likely than mid- to late-career workers to be employed in highly exposed occupations in several countries. In Indonesia, 4 per cent of youth employment falls within the highest exposure category compared with 3.2 per cent for adults. In the Philippines, the figures are 4.6 per cent for youth and 3.9 per cent for adults, while Thailand shows a smaller but similar pattern.
These differences reflect the concentration of younger workers in clerical, administrative and entry-level positions where GenAI is more likely to automate or transform routine tasks.
Disruption varies across Asean
The report highlights significant differences in potential AI exposure across Asean economies.
Singapore records the highest share of workers with more than minimal GenAI exposure at 42.2 per cent of total employment, reflecting its knowledge-intensive economy where professionals, managers, executives and technicians make up about 64 per cent of employed residents. These workers are concentrated in sectors such as finance, information and communications, and professional services.
The Philippines ranks second at 28.1 per cent, driven partly by its service-oriented economy and large information technology and business process outsourcing industry. Indonesia follows at 21.7 per cent, ahead of Vietnam at 20.8 per cent and Thailand at 20.6 per cent.
Although the Philippines has the highest occupation-based exposure rate in the region, with more than one-quarter of its employment pool (or 12.7 million jobs) exposed to AI, the report estimates that only 3.6 per cent of jobs in the archipelago fall into the highest GenAI exposure category where the risk of displacement is elevated.
The report underscores that the country’s labour market is more likely to experience changes in job tasks, productivity gains and improvements in job quality rather than widespread replacement of workers.
Singapore also illustrates the gap between exposure and adoption. A 2026 Ministry of Manpower survey cited in the report found that 71.5 per cent of firms had not begun adopting AI, while only 3.8 per cent had fully integrated AI into their core business processes.
AI adoption was concentrated among large companies and knowledge-intensive sectors such as information and communications, professional services, and finance.
Policy choices will shape outcomes
The report concludes that the benefits and risks of GenAI will depend less on the technology itself than on how governments prepare workers and businesses for the transition.
“The extent to which GenAI contributes to productivity gains, quality jobs and inclusive and equitable growth will depend on countries’ level of preparedness, which differs considerably across Asean,” the report said.
According to the report, stronger preparedness will require investments in digital infrastructure, skills development, enterprise capabilities and social protection, alongside governance frameworks that integrate labour market policies with digital economy strategies.
At the regional level, Asean has adopted a largely voluntary and coordination-based approach to AI governance through initiatives such as the Asean Digital Masterplan 2025, the Asean Responsible AI Roadmap (2025-2030) and the Asean Guides on AI Governance and Ethics.
