The Impact of Artificial Intelligence on Employment Structure in Developing Economies

This study investigates the impact of artificial intelligence (AI) on employment structures in developing economies using international statistical evidence from the International Labour Organization, OECD, World Bank, and World Economic Forum. A cross-country panel approach is applied to analyze occupational exposure to generative AI and its implications for sectoral employment shares, skill composition, and informality. The results indicate that while high-income economies exhibit greater exposure to AI-intensive occupations, developing economies face significant risks of displacement among low-skilled and routine workers, often accompanied by transitions into informal employment. Rather than causing immediate job losses, AI primarily transforms task content and skill requirements, generating both challenges and opportunities. The findings highlight the importance of reskilling policies and inclusive labour market strategies to ensure equitable outcomes of AI-driven technological change.