“The introduction of GenAI has already reduced monthly job listings by about 20 per cent for the most highly exposed, least complementary white-collar occupations. The largest slowdowns in job listings have been concentrated among middle-skilled and entry-level workers and in the business services sector,” the report said.
The World Bank drew on monthly data from labour market research and consulting firm Lightcast, covering 28 million job postings between 2020 and 2025. India accounts for roughly three-quarters of South Asia’s population and more than four-fifths of its economy.
However, the multilateral lender noted that the adverse effects of GenAI have been mitigated by complementarity: Roles that are more likely to see productivity gains from AI adoption and are less likely to be replaced. These jobs include doctors and managers, who high levels of skills and experience, and whose work relies on face-to-face communication, decision-making, and domain expertise.
Meanwhile, demand for AI skills has grown sharply in South Asia, with such roles commanding a wage premium of nearly 30 per cent over other white-collar jobs, the report said. Productivity gains could be substantial for the 15 per cent of South Asian workers in jobs that complement AI, who are generally highly educated and experienced. “Only 7 per cent of South Asia’s jobs are highly exposed to AI without being complementary to its use, and are thus at risk of automation -- well below the 15 per cent exposure in other emerging markets,” the report noted.
The World Bank also highlighted the region’s challenges in maximising AI’s benefits, pointing to limited numbers of skilled workers, unreliable electricity, and inconsistent fast internet access. “Improving infrastructure and education can help maximise AI’s benefits while minimising labour market disruptions. These investments could also help retain skilled AI innovators who might otherwise emigrate. Meanwhile, efforts to increase labour mobility -- such as removing obstacles to firms’ growth and improving physical connectivity, housing market efficiency, and job matching -- could accelerate job creation, potentially outpacing any displacement from AI,” it said.
The report further calls upon countries in the region to lower tariffs as part of broader free-trade agreements, which could particularly benefit younger and higher-skilled workers in manufacturing. “Major trade reforms have typically coincided with periods of significantly faster aggregate employment and output growth. These patterns would likely be amplified in South Asia if governments decided to lower tariffs now,” it noted.
 "World bank")