Artificial intelligence is rapidly transforming labour markets worldwide. In the Global South, however, these changes are unfolding unevenly, shaped by labour markets defined by high levels of informality, uneven social protection, and large skills gaps. Against this backdrop, the 66th Annual Conference of the Indian Society of Labour Economics (ISLE) hosted a panel titled “The Global South at an AI Crossroads: Labour Market Transitions Across Africa, Asia, and Latin America” on Monday, 19 January 2026, at Symbiosis International (Deemed) University, Pune.
This brought together leading experts from the FutureWORKS Collective to examine how AI is reshaping labour markets across regions and to explore policy pathways that can ensure AI becomes a force for inclusion rather than inequality.
Helani Galpaya, Chief Executive Officer of LIRNEasia, participated as a panellist alongside Megan Ballesty (Co-Founder and Public Policy Specialist, Sur Futuro), Ali Abboud (Assistant Professor, American University of Beirut), and Ruth Castel-Branco (Senior Lecturer, Southern Centre for Inequality Studies, University of the Witwatersrand). The session was moderated by Sabina Dewan, Founder and Executive Director of JustJobs Network.
During the panel discussion, Helani explained that AI is fundamentally reshaping the nature of work by moving humans away from direct, hands-on technical tasks. She said that routine tasks that previously required direct effort, such as coding or large-scale data labeling, are increasingly being handled by AI systems, while humans are focusing more on guiding these systems. This includes setting objectives, evaluating outputs, identifying gaps in previous models, and deciding what the AI should prioritize. According to her, these changes reflect a broader shift in the AI value chain, where technical execution is increasingly automated and human labor is directed toward higher-level tasks that require judgment, expertise, and oversight.
She also noted that this transformation is especially visible in downstream applications, with significant algorithmic replacement occurring where AI is deployed, integrated, and customized across industries. While some traditional roles may shrink, Helani highlighted that, at the same time, new opportunities are emerging in positions that demand critical thinking, domain expertise, and careful supervision of AI in high-trust, high-skill areas. Because automation is occurring alongside the creation of these new roles, she explained that widespread job losses are not yet fully visible in these parts of the value chain, but the way people work, the skills they need, and how economic value is captured are clearly evolving, signaling a significant shift in the structure of labor in an AI-driven world.
The broader conversation moved beyond debates about jobs gained or lost. Instead, it focused on a more fundamental question, who benefits from AI-driven transformations, who risks being left further behind, and how this transition can be governed responsibly. Key reflections underscored how AI often extends existing social and economic structures while introducing new patterns of vulnerability for workers, particularly those in informal sectors. Gendered disparities in skills, access, and representation continue to shape how AI affects work, with women facing disproportionate challenges in AI-driven labour markets.
As AI reshapes work across the Global South, inclusive policymaking, targeted skills development, and reforms to social protection systems are critical to ensuring that AI becomes a tool for expanding opportunity rather than deepening inequality.
