Risks and opportunities of emerging and frontier technologies for middle-income countries In assessing opportunities and risks for labour markets, one trend holds particular significance: the rapid development and adoption of emerging and frontier technologies. The pace of technology development is faster than ever , particularly in the field of artificial intelligence (AI), which has rapidly expanded over the past two decades. Recent innovations, such as generative AI, are poised to have a large-scale impact on the global workforce, likely augmenting rather than replacing jobs. However, less developed countries are facing challenges in leveraging these emerging technologies. Poor telecommunications and digital infrastructure mean that technological advancements are often hard to absorb, while weak labour market institutions make it difficult to adapt to change and prevent growing inequalities. This can prevent some less-equipped countries from engaging proactively with emerging technologies. The International Telecommunication Union (ITU) finds that only half of the world’s economies have implemented a cross-sectoral digital policy or strategy. Yet, failure to take a proactive approach to technology development and dissemination risks deepening inequalities between countries, particularly in economies that lack diversification. Innovative use of technology can enable countries to leapfrog certain development stages, addressing complex issues such as building resilient supply chains and preparing for the green transition. Conversely, where countries have implemented a digital or technology strategy, it is often separate from a job creation strategy. As a result, growth driven by technology adoption may not necessarily be job-creating and may even cause job displacement, local inequality and resource depletion. To avoid these pitfalls, technology development and deployment must be integrated with job creation efforts. Leveraging Technology Investment for Good Job Creation 4

Leverage Technology Investment GFC 2024