Artificial intelligence is accelerating workforce disruption across the globe, and the ten economies of the Association of Southeast Asian Nations (ASEAN) will not escape the tsunami of change this will bring over the next decade. Economies with youthful populations, a dominance of smaller, often informal, firms, and persistent digital divides are especially exposed to both the opportunities and risks associated with workforce transformation.
A collaboration with LinkedIn.
Our 2025 report offers a forward-looking perspective on how AI is transforming labor markets across the ten ASEAN member states—Brunei Darussalam, Cambodia, Indonesia, the Lao People’s Democratic Republic (Lao PDR), Malaysia, Myanmar, the Philippines, Thailand, and Vietnam—and what strategic policy actions are required to support inclusive and future-ready workforce transitions.
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10-18%
ASEAN’s GDP could be boosted by AI by 2030
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54–59%
ASEAN jobs are highly affected by AI, leading to roles being augmented, disrupted, or insulated
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66%
ASEAN business leaders would not hire candidates lacking AI skills
In the chapters that follow, we explore the rapidly evolving impact of AI and automation across key economic sectors—manufacturing, services, and agriculture—alongside the different implications for diverse workforce groups. The objective is to illuminate both the opportunities—enhanced productivity, new forms of employment, improved services—and the risks—displacement, inequality, skills gaps—that this transformation entails. Critically, the report highlights policy pathways suited to the region’s diverse contexts to help ensure that AI stimulates rather than undermines socioeconomic inclusion. These include targeted upskilling and reskilling investments and reforms to education and vocational systems to emphasize digital literacy and careers in science, technology, engineering and math (STEM), as well as humancentric capabilities like creativity and problem-solving. Strengthening worker protections and social safety nets is essential given ASEAN’s high levels of workforce informality, as is ensuring equitable access to digital infrastructure and services to prevent deepening divides.
The way forward
The report also stresses the importance of regional coordination in AI governance. ASEAN-led efforts such as the ASEAN Expanded AI Governance Guide and forthcoming workforce frameworks aim to underpin responsible, transparent, and locally relevant AI development. By sharing resources, standards, and practices and by learning from the experience of other regional economies, member states can mitigate adverse impacts while maximizing benefits.
Ultimately, this report is designed to provide ASEAN leaders and stakeholders with a comprehensive foundation to navigate AI’s impact on employment and craft responsive, inclusive strategies. With coordinated and anticipatory policies—ranging from education reforms and MSME digital support to worker transition programs and talent mobility frameworks—ASEAN can turn the challenge of workforce disruption into a shared opportunity for resilient, equitable, and sustainable growth.
But the window for action is narrow: against the backdrop of a shifting geopolitical landscape and intensifying global competition, the pace of AI advancement is not only dramatic—it is defining. We are at a break point where nations that act swiftly and strategically will lead the next wave of innovation and prosperity, while those that hesitate risk being left behind. The moment is urgent: as the AI revolution accelerates globally, the actions ASEAN takes today will define the region’s inclusive development for generations to come.
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