Kathmandu, Oct. 8 -- Artificial intelligence is beginning to reshape South Asia's labour markets, slowing hiring in some sectors while creating new opportunities for workers and service exporters, according to a new World Bank report.

The World Bank's 'South Asia Economic Update: Adopting AI for Growth', released on Tuesday, says AI adoption is rising across the region, although it remains well behind advanced economies. The report says AI is already affecting jobs and firms, particularly in business process outsourcing (BPO) and information and communications technology (ICT), sectors that account for a relatively large share of South Asia's exports.

For years, South Asian companies, including those in Nepal, have provided services to ...