Will AI replace jobs in Africa?

Summary

Business process outsourcing (BPO) offers relatively good wages and legal protection in a region where most work is informal. Can digital services exports drive growth the way manufacturing exports once did, and will AI undermine that path? Past technologies favoured skilled workers, which would keep BPO in established hubs such as India. Yet several randomised studies find that AI helps less experienced workers most. That finding favours young African service providers. BPO firms should therefore consider new delivery locations in Africa: this creates jobs and reduces poverty.

Citation

Melia, E. (2024, February 27). Will AI replace jobs in Africa? Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ).

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Topics

AI · BPO · Africa · jobs