Anwar Ibrahim warns G20 of AI's rapid impact on labor markets

Malaysian Prime Minister Anwar Ibrahim has issued a stark warning to G20 nations, stating that artificial intelligence (AI) is set to rapidly reshape global labor markets, potentially outpacing the ability of institutions to keep up. He delivered this message during his address at the G20 leaders' summit held in Johannesburg, South Africa.

Call for Preparedness and Investment

Anwar stressed that the world must learn from past disruptions, like globalization, which led to stagnant wages and eroded trust. He argued that resilience stems from common preparedness, not isolation. "Artificial intelligence will reorganize labor markets at a pace our institutions will struggle to match without early investment in transitions," he stated, highlighting that workers, particularly the youth and women, would be disproportionately affected without proactive measures.

Strengthening Global Safety Nets

The Prime Minister urged member countries to equip their populations for technological change and to reinforce social safety nets. He specifically emphasized supporting small- and medium-sized enterprises (SMEs) through the coming shifts. Anwar cautioned against "fiscal exhaustion," asserting that countries need the capacity to invest proactively. He also called on multilateral development banks to deploy resources more swiftly and collaborate closely with nations.

A Just Agenda for the Global South

Broadening his address, Anwar referenced South Africa's history with apartheid and colonization, stating that Global South countries expect the G20 to pursue a just and fair agenda. He was unequivocal in his call for the group to demonstrate resolve in ending atrocities in Gaza, the civil strife in Sudan, and achieving a peaceful resolution to the war in Ukraine. Anwar attended the two-day summit as a guest of South African President Cyril Ramaphosa.