Global value chains, artificial intelligence, and the future of labour in South Asia

This paper views how advancements in Artificial Intelligence (AI) are reshaping global value chains in ways that threaten employment opportunities in South Asia. Specifically, it explores how AI-enabled automation and decision-making have accelerated the reshoring of tasks that were historically offshored. Using the lens of socio-economic dimensions, the study observes how AI alters cost structures, skill requirements, and labour demand across the Global North–South production networks. Drawing on secondary data and illustrative case studies from South Asia, the paper argues how AI weakens the existing labour-based comparative advantages for South Asia while deepening structural dependencies. The paper further attempts to give recommendations for development practice, suggesting that without proactive industrial and labour policies, AI-driven restructuring of global value chains could exacerbate job insecurity and limit inclusive growth prospects in the Global South.