AI’s job impact will differ between rich and developing nations, warns Banga

Ajay Banga outlined a stark contrast in how artificial intelligence will reshape labor markets across the globe. In high‑income economies, the proliferation of large language models could affect up to one‑third of existing occupations, especially those involving routine cognitive tasks.

However, as national income levels decline, the share of vulnerable jobs shrinks dramatically. Banga noted that in middle‑income countries the impact falls to single‑digit percentages, while in low‑income nations it may be close to zero because the technology’s deployment cost and data requirements are prohibitive.

He stressed that, rather than focusing solely on job displacement, policymakers in developing regions should prioritize AI applications that raise productivity—particularly in agriculture, where small‑holder farms dominate. The World Bank is supporting initiatives that combine AI with local cooperatives to deliver affordable inputs and market information to farmers.

The remarks were echoed by Greek Prime Minister Kyriakos Mitsotakis, who highlighted the pressure on Western middle‑class workers from both AI‑driven automation and robotics in manufacturing. While the challenges are acute in the Global North, Banga concluded that emerging markets still have ample room to harness AI for inclusive growth.