Economic experts are concerned about the possible impact of generative AI’s quick development on employment in nations like India and Indonesia, as demonstrated by OpenAI’s ChatGPT. These economists worry that the broad use of this technology would result in fewer job prospects, especially for the large populations of young people in these countries.
The Japan Center for Economic Research and Nikkei conducted a survey as part of their quarterly Asia economic consensus, gathering insights from economists and analysts in Indonesia, Malaysia, the Philippines, Singapore, Thailand, and India.
14 out of 18 people who were questioned about the potential effects of generative AI thought that the technology will be generally beneficial, resulting in improved productivity through task automation in industries like healthcare and education.
The opinions of economists from India and Indonesia on generative AI, however, were more circumstantial. They emphasised the relatively high youth unemployment rates in both nations, which, according to World Bank figures from the previous year, were 23 per cent and 13 per cent, respectively. Indicating that increased automation would make it more difficult for the nation to absorb labour, Josua Pardede of Indonesia’s Permata Bank emphasised the necessity to provide housing for the working-age population in the short term. Potential job losses were identified by Punit Srivastava of Daiwa Capital Markets India in industries like content development, advertising, and IT.
Economists from other countries also raised concerns about the impact of generative AI on employment. Mitzie Irene Conchada from De La Salle University in the Philippines pointed out the potential loss of entry-level jobs during the transition and highlighted the possibility of job mismatches for fresh graduates unprepared for the use of generative AI in the workplace.
The survey further revealed that generative AI might benefit developed economies like Singapore. Given that the bulk of the population of Singapore is made up of professionals, managers, and executives in occupational jobs, Randolph Tan from the Singapore University of Social Sciences underlined the tremendous potential of ChatGPT in enhancing the capabilities of Singapore’s small workforce.