Many Pacific Island countries are already grappling with labour issues such as youth unemployment, low wages, wage disparity, talent migration, and a widening skills gap. As a transformative technology, Artificial Intelligence (AI) can either accelerate these labour issues or help alleviate existing labour problems in the region. Artificial Intelligence is likened to today’s electricity – something that can be used to automate or augment jobs. If properly planned, AI can help automate repetitive, routine tasks in a job, thus enabling employees to focus on higher-value tasks, leading to efficiencies and higher productivity.
For example, research by PricewaterhouseCoopers (PwC) finds that “AI is significantly increasing worker productivity and company revenue, with industries leveraging AI seeing three times higher growth in revenue per employee. Contrary to fears of job displacement, AI is primarily augmenting human capabilities, leading to rising wages and job growth, and also changing skills for employees to work with AI.” This article examines how AI is likely to impact jobs and skills across Pacific Island countries, and then suggests actionable strategies for governments, educational institutions, organisations, and citizens to turn this disruption into inclusive growth and a sustainable economy for the region.
AI’s Impact on Jobs and Skills
Generative Artificial Intelligence, often compared to electricity, is the transformative technology of our time. It touches every job in every industry around the globe. While the traditional impact of AI on jobs was mostly on routine tasks, Generative AI is shown to impact all highly skilled and non-routine jobs, such as financial analysts, teachers, doctors, lawyers, marketers, sales professionals, and administrative roles. Generative Artificial Intelligence can either automate or augment a job. Automation means that AI can replace certain tasks within a job, enabling the worker to focus more on higher-value tasks. For example, AI can generate lesson plans and lecture notes for teachers, allowing them to focus on coaching and mentoring students. Augmentation means that AI helps the worker perform their job by complementing and enhancing their expertise rather than substituting for it. For example, AI-assisted medical diagnosis can help doctors make high-quality decisions that can save lives.
As AI provides both immense opportunities and threats to jobs within the region, the recent 2025 Future of Jobs Report by the World Economic Forum states that by 2030, 170 million jobs are expected to be created. However, this growth is expected to be offset by the displacement of 92 million current jobs, resulting in a net growth of 78 million jobs. This means that while more jobs will be created by 2030, many existing jobs will also change, and some will go extinct. The report further states that new skills in demand include AI and Big Data, technological literacy, creative thinking, curiosity and lifelong learning, resilience, flexibility and agility, as well as analytical, leadership, and social influence skills.
In Papua New Guinea, the research shows that many employers are facing difficulties in hiring due to skills shortages in technical/ vocational skills and people skills like communication, teamwork, and problem-solving skills. Most of the skills shortages faced in Papua New Guinea are in highly skilled white-collar jobs such as management, professional services, and clerical and administrative tasks, which AI can augment, resulting in higher productivity and economic growth. Therefore, this provides an opportunity for organisations and individuals to harness this AI capability to improve jobs and promote economic growth.
According to the 2025 UN Human Development Report, 70% of respondents in low- to medium-HDI countries expect AI to increase their productivity at work, while 64% of respondents in those countries anticipate that AI will help them find entirely new jobs, and 57% of respondents in low- and medium-HDI countries also expect their current jobs to be significantly changed or replaced by AI. This includes Pacific Island countries, as they are categorised as low- and medium-HDI countries.
AI as a tool presents immense opportunities for Pacific Island countries to harness this technology, augment jobs, and improve productivity and job growth in the region. This also involves providing training to upskill citizens to work with the changing landscape and new jobs transformed by AI.
This has implications for all stakeholders within Pacific Island countries to prepare their citizens, employees, and organisations for a world that will be different due to technological disruptions. Based on regional and global trends, below are some strategies and initiatives that must be undertaken by governments, educational institutions, organisations, and citizens to prepare for AI.
Strategies for AI Implementation and Skills Development
Government
Government’s core responsibility is to provide digital infrastructure and high-speed connectivity across the island. They also must develop policies that enable AI adoption and reduce the digital divide – for example, the PNG Digital Government Plan 2023–2027. Government must also provide incentives for its citizens to continuously learn and update their skills and knowledge in this fast-changing world.
Educational Institutions
Educational institutions have a very critical role to play in training and developing students for a world of AI. For example, update the curriculum with AI and digital skills, further develop new programs and courses in AI and STEM-related fields. Also, provide AI literacy training for both teachers and students so that they are aware of this technology and use it ethically.
Organisations
Organisations have a crucial role in developing their employees’ skills in AI technology to improve productivity in their jobs. HR division within the organisation must lead AI and digital transformation initiatives. Create a culture of learning and experimentation with AI, allowing employees to gain experience and competencies with the technology. Provide micro-credentials and AI Hackathons to upskill employees with relevant industry skills.
Citizens
Citizens of the country must start using the AI tools available in order to understand the technology and its use cases in their jobs and personal lives. Upskill in AI literacy and other training to stay updated. Develop a culture of flexibility and lifelong learning, as jobs and skills change constantly.
Government, educational institutions, employers, and citizens have a role to play in preparing for AI. Proactive actions are critical, as this transformative technology is evolving very quickly and will have disruptive implications on jobs and the economy. If Pacific Island countries focus on augmentation rather than automation, it can lead to improved productivity and economic growth in the Pacific Island countries. Used wisely, AI can ease long-standing labour challenges and unlock inclusive economic growth across the Pacific.
