AI drove half of Asia’s 2025 growth – and has led to more hiring than firing: Nomura economist

The rapid advancement of artificial intelligence is fundamentally reshaping Asia's labor market, contributing to roughly half of the region's GDP growth in 2025 through chip exports and infrastructure investment. Sonal Varma, Chief Economist for India and Asia Ex-Japan at Nomura, reports that contrary to fears of mass unemployment, AI has currently resulted in a net positive impact on hiring. While automation is displacing entry-level roles in coding and finance-sector customer service, it is simultaneously driving significant demand for experienced professionals capable of applying AI within specific business contexts. This shift creates a distinct disadvantage for younger graduates whose tasks are easily automated, necessitating a pivot toward internships and government-led retraining programs. As enterprise adoption moves beyond model training into broader industry applications like healthcare and governance, the demand for local domain experts with technical proficiency will likely dictate the next phase of regional economic stability.