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In developing economies, artificial intelligence (AI) is expected to have transformative—and potentially disruptive—effects on labour markets. Unlike previous waves of automation, which primarily affected routine or low-skilled jobs, AI now increasingly impacts high-skilled, educated workers, younger adults and women in certain roles.
Drawing on new research, this talk by Dr Pablo Egaña-delSol, Visiting Fellow on the Oxford Martin Future of Work Programme, explores how AI exposure in developing countries correlates not only with education and skills, but also with deeper structural inequalities. Employment growth is concentrated at the top and bottom of the wage distribution, while the middle class shrinks. At the same time, wages for high-exposure jobs do not necessarily rise, challenging traditional assumptions about education as a protective factor.
The talk will also examine broader patterns across low and middle-income countries. From large informal economies to gaps in digital infrastructure, many developing regions face distinctive vulnerabilities in the face of AI-driven change. As AI adoption expands unevenly, the potential for deepening inequality grows – unless met with proactive skill-building, inclusive policy, and regional cooperation.
