Despite fears of AI-driven job displacement, technology is also fueling economic inclusion and job creation — especially in emerging markets. It’s time to reframe the debate and invest in the future of work
The rapid evolution of AI has heralded the rising fear of job losses and an acute criticism of AI-driven job displacement. Throughout history, technological advancements have disrupted industries, displacing certain jobs while creating new opportunities. From the Industrial Revolution, which replaced manual labor roles, paving the way for manufacturing and engineering, to the advent of personal computing, which replaced clerical and administrative roles with the rise of empowered worker productivity, the key to coping with any technological shift remains the same — adaptation.
Recently, AI-driven platform Mercor, which recently raised $100 million in a Series B, was criticized for promoting gig work over traditional employment, raising concerns about job security and worker protections. While these concerns have some validity, they overlook a crucial reality: while unbridled application of AI and gig work could be tools of labor exploitation, these twin forces can be even more powerful enablers of economic opportunity, particularly in emerging markets where traditional employment models have failed millions.
AI as a Job Growth Engine
The assumption that AI reduces job stability ignores its role in unlocking new opportunities. AI-powered job platforms streamline recruitment, reduce hiring biases, and connect workers with employers faster than ever. The World Economic Forum’s 2023 Future of Jobs Report indicates that while automation may displace some jobs, it is also projected to create 69 million new roles by 2027.
Startups like Mercor exemplify how AI-driven recruitment can reshape the job market. In India, where over 1 million people join the workforce every month, AI-driven platforms like BetterPlace, Awign, Gigforce, and Naukri are improving job access and reducing hiring inefficiencies. In fact, for San Francisco-based Mercor, India remains the biggest talent source, followed by the US, with Europe and South America displaying rapid growth.
In regions where formal job markets are underdeveloped, traditional and AI-enabled platforms democratize access to work. A farmer in rural India, a coder in Nigeria, or a virtual assistant in the Philippines can now reach global clients based on the merits of their skills, without the gatekeeping of traditional employment structures. Companies like Fiverr, Upwork, and Andela have built billion-dollar businesses by facilitating remote work for skilled professionals in emerging economies. Similarly, companies like Wify and Apna are facilitating jobs for blue- and grey-collar workers, paving the way for more scale as AI-driven job matching and just-in-time training create even more opportunities.
The Gig Economy as a Pathway to Economic Inclusion
Critics argue that gig work erodes labor protections, but this perspective is largely rooted in developed-world employment models. In many parts of the Global South, the alternative to gig work is not a stable 9-to-5 job with benefits — it’s either unemployment or informal, unregulated labor with even fewer protections. Gig platforms bring workers into the formal economy, enabling them to earn, save, and invest in previously inaccessible ways.
India’s gig economy, for example, is projected to employ 23.5 million workers, making up 8-10% of the country’s non-farm workforce by 2029-30. AI-powered job-matching platforms are accelerating this growth by helping gig workers find opportunities tailored to their skills. Consider Anna Reddy, once a janitor who trained in furniture assembly through Wify. Within 10 months, his work and skill impressed his trainers, who promoted him to a junior trainer — his income was doubled and his career now has fresh potential. Stories like his are not outliers; they represent a global trend. The World Bank reports that 78% of gig workers in developing countries say they prefer platform-based work due to its flexibility and access to higher wages.
AI and Gig Work: A Call for Investment and Innovation
Instead of framing AI and gig work as threats, policymakers, businesses, and investors should collaborate on solutions that maximize their benefits. The gig economy is expected to grow at a CAGR of 17.4%, with countries in Asia, Africa, and Latin America witnessing a surge in gig work opportunities.
Investors have a unique opportunity to back ventures that provide AI-powered upskilling, fair wage guarantees, and payment security. Companies like Turing and Remotebase are already tackling these issues, proving that ethical gig work can be both profitable and sustainable.
Technology is not inherently oppressive or liberating — it is what we make of it. AI and gig work have already begun transforming lives in developing economies. The challenge is not to resist them but to shape them into engines of inclusive growth and invest in the infrastructure that makes them equitable and scalable.
