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We take a look at how AI will change the labour market in Southeast Asia

Artificial intelligence (AI), already a disruptive force in many aspects of life, is poised to revolutionise the labour market in Southeast Asia. Its potential to enhance efficiency and innovation while also triggering a broad socioeconomic impact is si…
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We take a look at how AI will change the labour market in Southeast Asia

By Tech Collective on September 6, 2024

Artificial intelligence (AI), already a disruptive force in many aspects of life, is poised to revolutionise the labour market in Southeast Asia. Its potential to enhance efficiency and innovation while also triggering a broad socioeconomic impact is significant.

According to the International Monetary Fund's (IMF) World Economic Outlook 2024 Report, the number of unemployed persons as a percentage of the total labour force (unemployment rate) will be high in many Association of Southeast Asian Nations (ASEAN) countries. Thailand and Singapore will have the lowest rates at 1.1% and 1.9% respectively, whereas Vietnam will have 2.1%, Malaysia 3.5%, the Philippines 5.1%, and Indonesia 5.2%.

Even though the labour market has been witnessing a challenging climate, some high-growth industries outperform other sectors. They include food security, AI and blockchain, eCommerce, manufacturing, and healthcare markets.


AI can change the future of gaming, but what does this mean for gaming in Southeast Asia?


AI is becoming a cornerstone of the digital economy. Innovative solutions like ChatGPT empower startups to market, sell, create content, collect and analyse data, and increase customer engagement.

For example, one initiative in ASEAN is the AI-based value campaign for marketing Pizza Hut Singapore, which reduces the need for too many employees. The innovative approach involved using the Midjourney program to create AI-generated visual highlights creatively promoting the brand's offerings. The solution cut down on advertising costs, making it more affordable and passing the savings down to its customers.  

Southeast Asia is an attractive region for investors, whether venture capitalists or major tech giants. Companies like Apple, Microsoft, Google, and Nvidia, among others, are investing millions of dollars to expand their operations and add more employees to their enterprises. AI can improve the hiring and employee management processes.

How will AI transform Southeast Asia's labour market?

Incorporating artificial intelligence in the workplace is having a considerable impact on ASEAN companies. Some of the current and expected changes include:

Streamlining talent acquisition and retention

Business leaders can use AI to streamline their recruitment processes. It can identify talent pool gaps in the office, screen high-quality employees, and analyse and highlight redundant positions. It can automate sending out job postings when positions become available, operate Applicant Tracking Systems (ATS), and onboard new workers. 

Moreover, artificial intelligence can help with employee retention by identifying workers who should receive bonuses, salary increases, time off, or additional training to further their careers at the company. The tech can also gather and analyse talent data and provide reports to bosses to enable them to manage their subordinates better.

Adding more women to the labour force

Artificial intelligence can work toward closing the gender gap by removing interviewer biases towards men and eliminating prejudices against women's ability to perform important job roles.

AI, particularly through HRtech, can help promote gender equality in the workforce. Improving the screening process can help identify the best candidates for the job, regardless of gender, thereby enhancing employee recruitment and contributing to a more diverse and inclusive workplace.

Creating new job roles

Adopting new tech can lead to the inevitable job displacement scenario, with demand for alternative skills being necessary. For example, in the creative industry, AI can compose music, create literature, generate video content, develop artwork or edit photos, and more. Thus, employees are likely to be replaced to save costs.

Some jobs like customer service will be affected as AI tools can handle public engagement throughout the buyer's journey. Chatbots can mimic human interactions, automated emails can keep the prospect engaged, and programs can record lead information.

While some job roles, like customer service, may be affected by the technology, it also has the potential to create new job opportunities in Southeast Asia. As AI-based companies emerge, roles such as data analysts, research scientists, and specialists will become more prevalent.

Need for reskilling and upskilling the workforce

According to professional services firm PricewaterhouseCoopers (PwC), Southeast Asia has the third-largest labour force, but many of these workers need upskilling to shift to higher-value-added jobs. Many employees are also young and need mentorship to fulfil their potential.

The 2022 Global Trends Study showed that 97% of employers noticed skill gaps in Asian workers. However, they feared upskilling staff would make them move on to other companies. Moreover, there is the challenge of training costs and learning limited to a few employees.

Better employee retention initiatives can address such issues, like loyalty bonuses for staying when the company pays for training. Business leaders can also consider hiring foreign workers to supplement their workforce and bring in additional expertise.

Future of AI in the Southeast Asian labour market

As with all new technologies, adopting artificial intelligence in the ASEAN labour market presents challenges. These include implementation and maintenance costs, inadequate expertise, the need to upskill employees, job loss and fear of displacement, data privacy issues, and algorithmic biases in recruitment.

Regardless, adopting AI in the labour market in Southeast Asia can help address gender and income inequalities, improve job quality and employee care, and streamline workplace operations.

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