Digital Transformation, AI, and Platform Work: Implications for Labour Markets and Social Protection


Posted on July 27, 2026  /  0 Comments

The rapid technological advancement and Artificial intelligence (AI) have become synonymous with conversations about the future of work. Headlines often focus on which jobs are at risk and how quickly technology will replace workers. But the reality is far more complex.

On 11 June 2026, researchers and practitioners from across Asia gathered at the Pullman King Power in Bangkok for a knowledge sharing session hosted by LIRNEasia and the International Labour Organization (ILO) Regional Economic and Social Analysis Unit (RESA), to explore how AI, digital transformation and platform work are reshaping labourmarkets – and what this means for workers, businesses and governments. Drawing on emerging research from across the region, the discussions made one thing clear: technology is only one part of a much bigger story.

Looking beyond AI exposure

A recurring theme throughout the discussions was the need to move beyond asking how has technology advancements and AI impacted jobs. History shows that new technologies do not necessarily eliminate occupations overnight. More often, they change how work is organised, altering tasks within jobs rather than replacing workers entirely. Whether AI ultimately changes labour markets depends on much more than technological capability. It depends on whether firms adopt these technologies, how workplaces adapt, how workers respond, and whether policies help people navigate these transitions.

This distinction matters because the pace of technological change is accelerating, while its effects are unfolding unevenly. Large firms are often the first to adopt AI, while smaller businesses – where much of Asia’s workforce is employed – face barriers such as limited resources, infrastructure and technical expertise. As a result, the greatest risk may not be widespread job losses, but widening inequalities between workers, firms and countries.

Who pays for the future of social protection?

If work is changing, social protection systems will need to change too. But one question remained unresolved throughout the discussions: how will these systems be financed?

Many countries across Asia already struggle to provide adequate social protection, while ageing populations are increasing demand for pensions, healthcare and care services. At the same time, changing forms of work such as platform work are exposing gaps in systems that were largely designed around traditional employment.

Participants discussed the growing need to rethink how protection is funded and delivered. Rather than linking benefits only to formal employment, future systems may need to protect people regardless of how they work. Yet achieving this requires sustainable financing- an issue that remains one of the biggest policy challenges facing the region.

Climate change is also changing the future of work

Another important message was that digital transformation cannot be discussed in isolation.Workers today are navigating multiple transitions at once. Alongside technological change, climate change is increasingly shaping labour markets and livelihoods. Extreme heat, flooding and other climate-related shocks affect where people can work, how safely they can work and whether they can earn an income at all.

These overlapping pressures highlight why future labour market policies cannot treat technology, climate and social protection as separate issues. Building resilient labour markets means recognising that these risks reinforce one another and require integrated solutions.

Workers must remain at the centre

As work becomes increasingly mediated through digital platforms, many workers are finding themselves outside traditional labour protections. Platform workers often have no clear employer, making it difficult to access benefits, organise collectively or negotiate better working conditions. Existing labour laws, many of which were designed around enterprise-based unions and single workplaces, are often ill-equipped to protect workers who are geographically dispersed, work across digital platforms or are employed by companies based in other countries.

The discussions also highlighted that workers are finding new ways to organise despite these challenges. Alongside traditional unions, worker associations, labour-management councils and informal mutual support networks are emerging as alternative models for collective representation. While no single approach offers a complete solution, these efforts reflect that labour institutions must evolve alongside changing forms of work. Protecting workers will therefore require more than updating regulations – it also means ensuring workers have a meaningful voice in shaping systems that reflect the realities of today’s labour markets.

Evidence from across Asia

Research presented by FutureWORKS Asia grantees demonstrated how these broad regional trends are already playing out in different contexts.

Research from Bangladesh and India found that technology adoption in the garment industry is changing the skills workers need rather than eliminating jobs outright. As factories increasingly adopt automation and digital production systems, demand is shifting towards technical, supervisory and digital roles, making continuous reskilling increasingly important.The research also highlighted a gender dimension to this transition: while automation may reduce demand for traditionally female roles such as sewing and inspection, it also has the potential to create new opportunities for women in technical and supervisory positions – provided they have access to the training and skills needed to make that transition.

Research from the Philippines explored how digital platforms are reshaping nursing. Virtual work is creating new employment opportunities that allow nurses to work for overseas employers while remaining in their home country. At the same time, it raises new questions about labour protections, social protection and the growing burden of unpaid care work that many women continue to shoulder alongside paid employment.

Another study from Bangladesh examined social protection for ride-hailing and delivery workers, showing that while some platforms offer insurance schemes, these often provide limited coverage and fail to meet workers’ needs. The research found that this was not due to a lack of worker demand, but to poorly designed schemes with narrow accident coverage, no protection during commutes and burdensome claims processes.

Research from Sri Lanka highlighted another major challenge: the growing care economy. With populations ageing and women continuing to shoulder a disproportionate share of unpaid care work, demand for quality child and elder care is rising. Drawing on one of the country’s first large-scale studies of willingness to pay for care services, the research found that people are willing to pay more for care that is regulated, high quality and ideally supported by the government. However, current policy discussions have yet to fully address how the regulatory, quality assurance and monitoring systems needed to deliver such services will be financed. The research suggested that innovative financing approaches, including blended financing models, could help bridge this gap.

Climate risks facing platform workers were another key focus. Research from the Philippines showed how extreme heat, flooding and severe weather expose workers to greater health and financial risks, while current platform systems often do little to protect them during disasters.Drawing on emerging international labour standards, the research argued that platform workers should have access to the same protections and social security as other workers. It also highlighted a range of practical, low-cost measures that platforms could adopt, including providing transparent compensation during weather-related disruptions, suspending commission fees and loan deductions during disasters, integrating platform maps with existing disaster warning systems, and enabling workers to avoid flood-prone areas through destination-setting features

Together, these studies underscored that while the challenges vary across sectors and countries, they are deeply interconnected. Questions of technology, care, climate, labour rights and social protection cannot be addressed in isolation.

A broader conversation about the future of work

The conversations concluded with a shared recognition that no single institution or discipline can address these challenges alone. As countries across Asia navigate the overlapping transitions driven by digital transformation, demographic change and climate change – continued research and stronger collaboration is critical in shaping policies that are both forward-looking and grounded in the realities of workers’ lives.

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