AI May Impact Up to 38% of Latin America Works

Artificial intelligence could impact between 26% and 38% of jobs in Latin America, presenting both risks and opportunities, according to the Employment Exposure to Generative AI and the Digital Divide in Latin America report by the International Labor Organization (ILO) and the World Bank.

The study reveals that up to 87.8 million jobs in Latin America are at risk due to the growing adoption of AI. It is estimated that between 2% and 5% of these jobs could be fully automated, while between 8% and 14% could experience an increase in productivity without the need for full automation. Despite these risks, the report stresses that AI has the potential to transform and augment jobs rather than eliminate them altogether.

In countries such as Brazil, Colombia, and Mexico, it is estimated that AI could impact 35% of jobs. In Brazil, this represents approximately 37 million jobs, while in Mexico it affects 20.48 million workers. In other countries in the region, such as Chile and Peru, the impact stands at 37% and 31% respectively. In contrast, the report indicates that the impact of AI in Argentina, being limited to urban centers, reaches 44%.

Impact on Sectors and Occupations

Generative AI (GenAI) is more likely to affect formal jobs in urban areas, especially those occupied by workers with higher education and income. Professions such as salespeople, architects, educators and healthcare workers are among the most susceptible to changes driven by this technology. Service sectors, in particular, will be influenced by AI's ability to automate repetitive and routine tasks.

At the employment level, the report predicts that GenAI adoption could increase productivity in 14% of current occupations. However, effective implementation of this technology is conditioned by existing digital infrastructure and gaps in access to technology.

"Effectively managing the impacts of Generative AI requires a robust and inclusive social dialogue that brings together all stakeholders. By fostering meaningful conversations between policymakers, industry leaders, workers and trade unions we can ensure that the transformative power of AI is harnessed responsibly, addressing the needs of all workers while mitigating the risks associated with technological change," said Ana Virginia Moreira Gomes, ILO Regional Director for Latin America and the Caribbean, ILO.

A crucial challenge raised by the report is the digital divide and unequal infrastructure that limits access to the benefits of AI. Approximately 17 million workers in Latin America could be excluded from the benefits of AI due to these gaps. William Maloney, World Bank chief economist for Latin America and the Caribbean, emphasizes the need for public policies that improve connectivity and digital skills to ensure an equitable transition to a technology-transformed labor market.

"When deployed sustainably, digital technologies, including Gen AI, can increase productivity and the creation of more and better jobs. However, to take advantage of these opportunities it is vital that countries in the region invest in connectivity and skills, while strengthening social protection systems to ensure that no one is left behind," Maloney concluded.

The report concludes by emphasizing the need to implement lifelong learning programs to mitigate job losses and improve productivity, as well as to strengthen workers' basic skills to boost productivity and creativity with Gen AI0.

Improving social protection systems is also one of the main perspectives within the report, "essential to stabilize transitions and address gender gaps." In addition, there is a need to improve infrastructure to encourage the adoption of digital technologies and support informal sector workers in their transition to the formal sector to maximize their chances of benefiting from AI.