Artificial Intelligence in the Informal Economy

In much of Asia and the Global South, most workers earn a livelihood in what policy definitions label as the unorganised/informal economy, including casual, own-account, home-based, seasonal, or micro-enterprise work, which has limited legal protections. As artificial intelligence (hereinafter AI) spreads through value chains, from farming and logistics to retail, care, and construction, it threatens to exacerbate pre-existing skill gaps and introduce new modes of exclusion among workers denied access to skilling or credentials, or the devices and connectivity that enable skilling. This chapter aligns with the volume's objectives by reflecting on poverty and progress through a rights approach: the issue isn't whether AI will ‘replace workers,' but rather who gets access to capabilities, protections, and voice in determining how intelligent tools are taken up in low-wage, low-margin economies. The chapter therefore uses the informal economy as a lens through which to see how structural inequalities operate across gender, class, caste, ethnicity, disability and geography.