The rapid development of artificial intelligence (AI) is transforming the global economy and reshaping labor markets. What does this mean for South Asia and Nepal?
AI and employer demand
“Between January 2023 and March 2025, the share of AI-related postings in South Asia more than doubled — from 2.9 to 6.5 percent of all listings — and demand for AI skills grew 75 percent faster than overall non-AI listings.” World Bank
Exposure, complementarity, and risks
“Across South Asia, only around 22 percent of jobs are classified as exposed… Many of South Asia’s AI-exposed occupations feature high complementarity between humans and AI: about 70 percent of AI-exposed jobs (amounting to 15 percent of all jobs) are also complementary, and therefore less likely to be displaced by AI and more likely to enjoy productivity gains from AI adoption.” World Bank
“Only 7 percent of jobs are highly exposed with low complementarity, and therefore at increased risk of displacement.” World Bank
Where demand has fallen (examples)
“Postings for more exposed jobs declined immediately and substantially relative to the trend in postings for less-exposed jobs after public release of ChatGPT in November 2022. This drop is driven by cutbacks in job postings for the most-exposed jobs with the lowest human-AI complementarity, such as software developers, call center agents, accountants, and proofreaders. For example, labor demand for call center agents (top quartile exposure) fell 24 percent relative to machine operators (bottom quartile exposure).” World Bank
Sectors Nepal’s policy and reports highlight
The Government of Nepal’s National AI Policy, 2025 “envisions growth in AI applications across IT, health, education, energy, transportation, tourism, and industry. The policy emphasises skill development from school to university levels and raises general awareness at the local level.” The Kathmandu Post
“The policy also seeks to protect citizens’ rights, privacy, and security in using AI while encouraging public-private partnerships in the sector.” The Kathmandu Post
Implications for Nepali workers (sourced guidance)
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Demand for AI-related skills is rising rapidly in South Asia; countries and firms prioritise “developing human resources with the necessary skills to work with AI” and support for startups and research to absorb new technologies. The Kathmandu Post
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Many exposed jobs in South Asia are also complementary to AI and could see productivity gains rather than outright displacement; occupations involving interpersonal interaction, responsibility, and expert judgment (for example, doctors, teachers, and lawyers) are noted as high-complementarity roles. World Bank
Policy and readiness context
“Benefiting from AI requires that countries have the right preconditions in place… South Asia scores below the EMDE average in indexes of five key dimensions of AI readiness: government readiness, digital infrastructure, human capital, technological innovation and economic integration, and legal frameworks and regulations. Investing in the technological and institutional framework for a supportive digital economy could help boost growth and avoid job losses from the spread of AI.” World Bank
*Sources used: World Bank — “Is AI adoption impacting job markets in South Asia?” and The Kathmandu Post — “Nepal rolls out ambitious AI policy”.
Share Your Thoughts
What impact could these trends have locally in Nepal?
Do you agree with the World Bank’s findings about exposure vs complementarity?
How should Nepali policymakers, educators, and employers prioritise skill development through 2026?
Which sectors in Nepal will grow because of AI and automation, and which will shrink?
What lessons or experiences can you share from your workplace or community?