ILO Report: AI's Impact on Cambodian Employment Likely Limited

A new study by the International Labour Organization (ILO) has downplayed the threat that artificial intelligence (AI) could pose to employment levels across the Association of Southeast Asian Nations (ASEAN). The report, titled “Generative AI and labour markets in ASEAN: Significant exposure, limited disruption, uneven preparedness,” released on July 8, suggests that while generative AI is set to touch the working lives of nearly 80 million people across the region, only a small proportion work in occupations facing the highest levels of exposure. The study found no evidence to date of large-scale regional job losses, considering both occupational exposure and emerging patterns of GenAI adoption. It estimated that in 2025, 22.9 per cent of total employment in ASEAN, equivalent to nearly 80 million workers, will be in occupations with more than a minimal degree of potential exposure to AI. Only 3.3 per cent of the workforce, corresponding to 11.7 million workers, will be employed in occupations classified within the “highest exposure category.” Around 67 per cent of employment will remain concentrated in occupations with no identified exposure to GenAI. Singapore recorded the highest share of workers with more than a minimal degree of GenAI exposure, at 42.2 per cent of total employment, followed by the Philippines at 28.1 per cent. Indonesian exposure was estimated at 21.7 per cent; Vietnam (20.8); and Thailand (20.6). The report noted that in Cambodia, along with Indonesia, the Philippines, and Vietnam, wage workers in significant GenAI exposure roles earn notably more than those in non-exposed or minimally exposed roles. “Cambodia, Laos, Myanmar and Timor-Leste generally exhibit lower levels of readiness, reflecting more limited digital infrastructure, institutional capacity and technological capabilities,” the report stated. “While these countries may initially face lower levels of exposure to GenAI, they also risk capturing fewer of the potential benefits associated with AI-driven productivity growth,” it added. Cambodia's low GenAI exposure is attributed to its smaller formal services sector and a larger proportion of employment in agriculture, construction, and light manufacturing, according to the report. The report highlights that GenAI adoption remains at an early and uneven stage, with use concentrated in technology-intensive occupations and comparatively limited uptake in office and administrative roles despite their high exposure. Young workers (ages 15-24) and adult workers exhibit broadly similar levels of exposure to GenAI. Furthermore, a significant gender gap in AI exposure is identified, with women being more than twice as likely as men to be employed in occupations with high GenAI exposure, reflecting their concentration in clerical, administrative, and professional roles. Overall, the potential for labour market transformation is significant, but widespread disruption is not yet visible, the report concluded.