AI and Unemployment: A Case Study on MENA
Artificial Intelligence (AI) is among the most disruptive developments of the twenty-first century. With the ability to automate and streamline systems, AI has forced people to ask about whether future innovation could cause mass unemployment. Notably, recent advances in AI have already raised concerns about job displacement, particularly in industries such as customer service and the creative arts, as artificial intelligence begins performing tasks once thought to be exclusively human.
Current trends underpin these fears: the technology industry, which has been one of the liveliest labor markets, is shrinking in employment as AI takes over around 30 percent of code on projects. Other types of jobs under threat include clerical support positions. The International Labor Organization estimates that 2.3 percent (75 million) of such jobs are being threatened with automation and the figure increases to 5.1 percent in high-income countries.
It is not the question of whether AI is going to replace jobs, but rather which jobs it will replace—and how society will adapt. To contain the threats of AI, policymakers and education systems need to concentrate on training human resources to survive in an AI-driven future.
The MENA Region
The Middle East and North Africa (MENA) region is no exception to this and is on the edge of adopting artificial intelligence (AI) technologies in different spheres. Although the possibility of economic transformation cannot be ignored, the dangers that come with such a fast technological adoption should not be disregarded either. As AI continues to develop, it brings with it profound implications for the labor market, particularly affecting women as well as replacing low-skilled workers, causing a mismatch between available and required skill sets.
The Impact on Women: In the MENA region, while AI presents opportunities for women through the introduction of new technologies, its contributions to existing gender disparities cannot be ignored. Women in MENA tend to work in areas disproportionately affected by automation, including manufacturing, retail, transport, and administrative services. Furthermore, particularly in rural regions and war-torn nations, notably Palestine and Yemen, the lack of access to technology makes women less competitive in taking on new positions.
Given these risks, policymakers in the MENA region should act proactively to respond to the future of work. The effects of AI should be reduced by strategic measures aimed at developing skills, diversifying the labor market, and restructuring the economy. The promise of AI should not be made at the expense of social and economic progress.