Concerns regarding the potential effects of generative artificial intelligence on the labour market are prevalent across numerous nations. Argentina is not an outlier. Indeed, there are justifiable reasons for this apprehension. It is the Latin American nation with the highest degree of occupational exposure to GenAI, according to a recent study conducted by the Economic and Social Council of Buenos Aires City. CESBA is an independent public entity responsible for formulating legislation, technical reports, and recommendations aimed at the city’s executive and legislative branches. According to data from the International Labour Organization, the country exhibits an exposure level of 0.292 on a scale of 0 to 1. In comparison, Chile registers at 0.279, with Brazil closely following at 0.276 and Mexico at 0.261. In the Americas, it is exceeded solely by Canada (0.322) and the United States (0.332). CESBA President Manuel Socias informed that this phenomenon can be attributed to Argentina’s status as the nation with the highest urbanisation rate in Latin America — 97% of its population currently resides in urban areas. This indicates that a significant portion of its workforce is situated in urban areas, with a predominant 78% of employment concentrated in the service sector, which is the economic segment most vulnerable to the effects of GenAI. There exists no area in Argentina with a greater level of exposure than Buenos Aires City.
The primary emphasis of the CESBA study, titled the Occupational Exposure Index to GenAI, is the influence of GenAI on Buenos Aires City. According to the authors, this represents a groundbreaking study on a global scale, as no other city has undertaken such an analysis. The data indicate that Buenos Aires exhibits an exposure level of 0.353, significantly surpassing the national average. The closest comparison is Singapore — a city-state — which has an exposure level of 0.366. “If we were to compare it with New York or London, [the city] would likely rank lower,” Socias acknowledged. The elevated exposure level for Buenos Aires is associated with two principal factors. The first observation is that employment is predominantly situated within the service sector, accounting for 88% of the total workforce. This distribution spans various sectors, including retail, healthcare, education, finance, public administration, and professional and technical fields. The second derives from the city’s elevated educational attainment. “This matters because generative AI is particularly good at tasks that for years required a college education, such as writing, synthesizing, analyzing, or programming,” the report explained. Among service companies, one of the sectors experiencing the most rapid adoption is the software and IT sector.
According to a national survey on AI adoption in small and medium-sized enterprises in Argentina referenced in the CESBA report, 85% of companies in that sector utilise at least one AI technology. Knowledge-based services represent Argentina’s third-largest export sector, contributing US$10 billion in export revenue. Leandro Mora Alfonsín, executive director of Argencon — the business chamber that represents KBS companies — stated that the “traditional role” of the programr is evolving “from manual coding toward the orchestration and supervision of AI agents.” When enquired about the influence on the recruitment of young individuals for entry-level positions within the sector, he remarked that “the leading KBS export companies in Argentina are expanding their workforce.” He cited the example of JP Morgan, which is in the process of adding 1,000 new employees, the hiring drives by consulting firms EY and PwC over the past year, and Accenture’s opening of new offices in Salta, Córdoba, and Mendoza. The CESBA report indicated that current evidence demonstrates that, on a global scale, firms implementing AI are experiencing an increase in overall employment levels. However, concurrently, they systematically diminish the proportion of employees with minimal tenure. “In the U.S., the U.K., Germany, India, Japan, and Brazil, the proportion of junior workers declines after adoption — in every case and in a sustained manner,” the study explained.
Mora Alfonsín acknowledged that in a “early phase of technology adoption,” operational, repetitive, and low-complexity tasks, which have historically been performed by younger workers, are being taken over by AI tools. He also stated that there is a shift in demand toward skills involving “supervision and judgment.” One of the firms undergoing these transformations is Baufest, a global supplier of software and technology services. Leonardo Tocci, the company’s Data & Applied AI Practice Head, stated that they do not anticipate artificial intelligence resulting in a decline in demand for young talent. “What is beginning to change is the type of work people do when they join an organization and, with that, the way they build their first few years of experience,” he told. He explained that this changes the expectations companies have for entry-level candidates, as it is no longer merely about hiring individuals to carry out repetitive tasks. “The challenge is to keep pace with that change and find new ways to develop talent.” For Socias, there exists a binary debate that must be navigated. “We must move beyond the techno-optimist narrative that technological development will solve all of humanity’s problems on its own, as well as the apocalyptic narrative of the end of work,” he explained. Socias went on to emphasize the importance of establishing a “common ground for discussion.” This involves determining the actual exposure of each task and, based on that, building a roadmap so that AI becomes an “opportunity to increase productivity, free up workers’ time, and improve incomes.”
The objective, he emphasised, is to guarantee that the transformations AI introduces to the labour market do not occur merely as a result of “the inherent inertia of technology.” Socias articulated that the study represents the initial phase in a tripartite strategy. The second stage will aim to evaluate actual adoption via comprehensive interviews with business associations, unions, and sector specialists. The third stage will involve the collaboration of companies, unions, and representatives from the Buenos Aires City government to foster dialogue, establish consensus, and formulate recommendations to steer the adoption process. Socias indicated that discussions are already underway with representatives from the General Confederation of Labour and the ILO in Argentina. “Leaders and unions are fully aware that this is an issue coming their way and that they cannot turn a blind eye,” he stated, adding that many unions have already set up their own artificial intelligence labs. Regarding the business sector, and while noting that companies have historically been “less open to social dialogue” than unions, he called discussions between them so far “positive.” And “It’s a new experience for them to be invited to discuss this,” Socias acknowledged.
