A new joint working paper by the International Labour Organisation and the World Bank has cautioned that generative artificial intelligence is set to transform labour markets globally, though its effects will vary sharply between advanced and developing economies.

The study, produced as a background paper for the World Development Report 2026, analysed labour market exposure to GenAI in 135 countries, representing about two-thirds of the world’s workforce. It concluded that disparities in digital infrastructure, job structures, and skill levels will largely determine which countries and workers gain from , or are disadvantaged by — the technology.

The report noted that advanced economies are more exposed to GenAI, particularly in clerical and professional occupations. In contrast, while developing countries face lower overall exposure, structural limitations hinder their capacity to harness potential productivity gains.
It identified the digital divide as a critical issue, pointing out that even in low-income countries, workers in vulnerable roles are often connected online. As a result, automation could displace relatively higher-quality jobs — including clerical and administrative positions — that have traditionally provided pathways to decent employment, especially for women and young people.

The study also emphasizes that in developing economies, many workers in roles with productivity potential lack dependable internet access, restricting their ability to take advantage of GenAI.

Moreover, even when job titles are similar across countries, the tasks involved often differ: workers in lower-income countries typically perform fewer non-routine analytical tasks, rely less on computers, and engage more in routine or manual work, which limits the potential for AI-driven productivity gains.

The authors stress that the overall impact of GenAI will hinge not just on technological capabilities, but also on digital connectivity, how tasks are organised, and the skill levels of the workforce.

To ensure that AI’s benefits are broadly shared, the paper recommends policies that enhance digital infrastructure, promote skills development, and reinforce labour market institutions and social protection systems.

“The potential of generative AI is immense, but without inclusive policies, it risks deepening inequalities in the global labour market,” the report concluded, urging governments and international partners to act proactively.

Nigeria has rolled out a National AI Strategy focused on ethical and inclusive innovation to promote sustainable development and narrow digital gaps. First drafted in 2024 and updated through 2026, the NAIS aims to position Nigeria as a global AI leader by promoting responsible innovation.

Its core pillars include building foundational infrastructure, ensuring ethical governance, and transforming key sectors such as health, agriculture, and education.