GenAI Threatens Jobs, ILO-World Bank Alert
A joint working paper by the International Labour Organisation (ILO) and the World Bank has cautioned that generative artificial intelligence (GenAI) will fundamentally alter labour markets across the world, with the most vulnerable economies standing to lose the most if deliberate policy action is not taken.
The study, prepared as a background paper for the World Development Report 2026, assessed labour market exposure to GenAI across 135 countries, accounting for roughly two-thirds of global employment. It identified digital infrastructure gaps, workforce composition, and skill disparities as the central factors determining which nations and workers will benefit from the technology and which will not.
Advanced economies, the report found, face higher overall exposure to GenAI, particularly in clerical and professional occupations. Developing countries, while less exposed in aggregate, face structural barriers that significantly constrain their capacity to convert AI adoption into productivity gains.
The findings raise particular concern over the digital divide. Even in low-income settings, workers in vulnerable roles are often connected online, meaning automation could eliminate higher-quality positions — such as clerical and administrative jobs — that have historically provided pathways to decent work, especially for women and young people. At the same time, workers in roles where AI could improve productivity frequently lack reliable internet access in developing economies, leaving them unable to leverage the technology’s potential.
The paper also flags an often-overlooked dimension: similar job titles across countries do not always reflect similar tasks. Workers in lower-income nations tend to perform fewer non-routine analytical functions, depend less on computers, and carry out more routine or manual work — all factors that narrow the scope for meaningful AI-driven productivity improvements.
The ILO and World Bank authors stressed that the net impact of GenAI will hinge not solely on the technology itself, but on the quality of digital connectivity, how tasks are organised within workplaces, and the depth of workforce skills. The paper urges governments and international partners to expand digital infrastructure, invest in skills development, and reinforce labour market institutions and social protection frameworks to ensure equitable distribution of AI’s benefits.
“The potential of generative AI is immense, but without inclusive policies, it risks deepening inequalities in the global labour market,” the report stated.
Nigeria’s response to this global shift is articulated in its National Artificial Intelligence Strategy (NAIS), drafted in 2024 and carried into 2026. The strategy positions Nigeria as a prospective global AI leader anchored on responsible innovation, with dedicated pillars covering foundational infrastructure, ethical governance, and sectoral transformation across health, agriculture, and education.
Inclusivity is central to the NAIS framework. The strategy mandates that 40 per cent of AI programmes benefit women and underserved groups, incorporates AI tools adapted to Nigerian languages and local contexts, and targets the development of three million AI-literate youth through the 3 Million Technical Talent (3MTT) programme and school curriculum integration.
Government agencies including the National Information Technology Development Agency (NITDA) and the Federal Ministry of Communications, Innovation and Digital Economy are leading implementation efforts, while homegrown startups such as Intron Health exemplify targeted AI deployment in healthcare and finance. The NAIS ethical safeguards align with Nigeria’s 2023 Data Protection Act and its AI Ethics Guidelines, providing a regulatory foundation for responsible adoption.