Singapore’s AI push needs a defensive shield to protect workers
The vulnerability here extends well beyond factory floors and call centres. Recent research reveals that generative AI disproportionately affects cognitive workers – precisely the middle- to upper-income professionals who have traditionally enjoyed job security. Various studies show that occupations involving non-routine cognitive tasks are among the most exposed to AI automation. Computer programmers, accountants, legal assistants and financial analysts, who typically have college degrees and command respectable salaries, face significant exposure. This represents a fundamental shift from previous waves of automation, which primarily affected routine manual and clerical jobs. As the International Monetary Fund notes, nearly 60 per cent of employment in advanced economies is exposed to AI – and it’s the high-skilled workers who face the greatest risk. Singapore, with its large knowledge-intensive workforce, is particularly vulnerable.
Workers who are laid off often experience large and persistent income losses when they find new employment. Research on displaced workers shows that those who lose their jobs earn on average 33 per cent less when they are re-employed, with earnings deficits persisting for years. Especially for older cognitive workers who have spent decades building specialised expertise, the erosion of human capital can be particularly severe. Their skills may not transfer readily to other sectors – a compliance officer cannot easily become a data scientist, for example – and younger, cheaper workers familiar with AI tools may hold a decisive advantage.
