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AI: Jobs, Power & Money
21SEP

ILO: poor nations gain less from AI

3 min read
16:45UTC

The International Labour Organisation said on 4 November that AI's effects on jobs remain modest, and warned developing economies of disruption without dividend.

EconomicAssessed
Key takeaway

The ILO projects AI output gains in low-income countries at about half those of advanced economies.

The International Labour Organisation (ILO), the UN's labour agency, said in a policy brief on 4 November that AI's effects on jobs so far are "modest and slow-moving, even in advanced economies", and warned developing economies of "disruption without dividend"⁠1. Earlier ILO, World Bank and BIS work had already found rich countries more exposed to AI than poor ones. The brief adds that poorer countries also stand to gain less: in a high-productivity scenario, ten-year output gains reach about 5% in advanced economies and about 2.7% in low-income ones.

Patchy power supplies cut exposure further in poorer countries. "Limited access to electricity further reduces effective exposure," the brief says, citing a study of 25 countries with 3.5bn people that puts high exposure at about 12% of workers in low-income countries and 15% in lower-middle-income ones.

Use is uneven inside economies too: in 2025, 17% of small firms used at least one AI tool, against 55% of large ones. "The AI divide is a capability and governance divide, not simply an access gap," the ILO writes. For a low-income country, that means fewer jobs at risk in the near term and a smaller share of the output gains when they arrive.

Deep Analysis

In plain English

The International Labour Organisation is the United Nations agency for work and workers. It published a short report on what AI means for jobs in poorer countries. It says AI has so far changed jobs slowly, even in rich countries. In poorer countries, fewer jobs involve the computer-based tasks AI can do, so fewer workers are directly affected for now. But those countries also stand to gain less from AI, partly because many people lack reliable electricity and internet, and small businesses rarely use AI tools.

Deep Analysis
Root Causes

Exposure depends on the job mix. Low-income economies have more farm and informal work and fewer office jobs, so fewer workers do tasks AI can perform today.

Infrastructure caps use. A study of 25 countries covering 3.5bn people found that "limited access to electricity further reduces effective exposure": without reliable power and connections, AI tools cannot reach most workers.

Gains need firms able to adopt. In 2025, 17% of small firms used an AI tool against 55% of large ones, and poorer economies are dominated by small firms.

What could happen next?
  • Risk

    Developing economies could face job losses in outsourced services without the productivity gains rich countries capture.

    Long term · Suggested
  • Opportunity

    Investment in electricity, connectivity and small-firm adoption could raise poorer countries' share of AI gains.

    Long term · Suggested
  • Meaning

    The UN labour agency now frames AI's divide as one of capability, not exposure alone.

    Immediate · Assessed
First Reported In

Update #22 · Central banks see AI before payrolls do

International Labour Organisation· 6 Nov 2026
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Causes and effects
This Event
ILO: poor nations gain less from AI
The UN's labour agency now argues that poorer countries stand to gain less from AI as well as being less exposed to it.
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Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.