Agentic AI and Workforce Development: A Blueprint for the Global South

Imagine a world where customer service is available 24/7, personalized for every individual, and can solve complex problems instantly.

Imagine a world where customer service is available 24/7, personalized for every individual, and can solve complex problems instantly. Or envision manufacturing processes optimized by AI that can predict and prevent machinery failures before they occur. This is the promise of Agentic AI—a paradigm shift in artificial intelligence that integrates autonomy, adaptability, and strategic decision-making to solve complex challenges with minimal human intervention.

In 2025, Agentic AI represents a turning point. Unlike traditional rule-based AI or content-focused generative AI, Agentic AI operates dynamically, understanding context, analyzing data, and executing tasks autonomously. However, this transformative technology raises a critical question: what will happen to the millions of workers whose roles may be displaced by AI automation? Without intervention, these shifts could exacerbate existing economic disparities. Reskilling, therefore, becomes an urgent priority for nations in the Global South.

The Rise of Agentic AI and Its Implications

Agentic AI transcends automation, enabling applications to manage complex tasks with reasoning and strategic planning. This evolution marks a fundamental shift in how industries operate—from static automation to dynamic and context-aware systems. By 2028, Gartner (2023) predicts that at least 15% of daily workplace decisions will be made independently by such systems. While this promises significant productivity gains, it disrupts traditional labor markets and necessitates a proactive approach to workforce adaptation through reskilling initiatives.

Reskilling: A Critical Priority

Reskilling equips workers with the skills needed to thrive alongside advanced technologies. For industries adopting Agentic AI, this includes digital literacy, AI operation, data analysis, and soft skills such as problem-solving and adaptability. Governments in the Global South must create frameworks to foster these competencies. This effort includes exploring multilateral or bilateral collaborations, such as leveraging platforms like APEC, ASEAN, or BRICS forums, which provide mutual benefits. For technology-exporting nations, such partnerships open new markets and enhance global influence. For the Global South, they accelerate access to cutting-edge tools, expertise, and resources, fostering workforce competitiveness and inclusive growth.

Additionally, B-to-G partnerships with major technology companies such as Microsoft, OpenAI, Google, Alibaba, Tencent, Bytedance, and NVidia can be pursued to leverage advanced tools and resources for reskilling initiatives. These partnerships are essential for technology companies as they provide opportunities to expand their market reach, gain insights into emerging economies, and strengthen their global presence. By contributing to workforce development, these companies enhance their reputation as socially responsible entities and ensure a skilled labor force capable of maximizing the potential of their technologies.

Incentives to Drive Reskilling Efforts

Incentivizing industries to support reskilling is paramount. Here are some proposals from the author, along with benchmarks from other regions that offer valuable insights:

Tax Incentives: Governments can reduce corporate taxes for companies investing in employee training programs. These incentives can also be extended to companies providing training to communities, local populations near factories or corporate operations, or MSMEs. Singapore’s example demonstrates a proactive approach to workforce development through fiscal incentives. Businesses can deduct 100% of qualifying training expenditure as a business expense. This applies to a wide range of training activities, including courses, workshops, seminars, and conferences. Under the Enterprise Innovation Scheme (EIS), introduced to further incentivize training, businesses can enjoy a 400% tax deduction on the first S$400,000 of qualifying training expenditure each year from YA 2024 to YA 2028. Such measures ensure continuous investment in workforce skills, showcasing a benchmark for other nations aiming to align fiscal policy with human capital development.

Subsidized Training: Offering financial support for skill development courses can encourage both workers and employers to participate. Funding for these subsidies can come from a mix of sources, including government budgets allocated for workforce development, contributions from international development agencies, and public-private partnership agreements with major technology companies. Such diversified funding ensures sustainability and scalability for training initiatives. In Germany, for example, the Federal Employment Agency subsidizes training programs, including digital upskilling, for both employed and unemployed individuals.

Public-Private Partnerships: Collaborations between governments, educational institutions, and industries can create tailored training programs aligned with market needs. These PPPs could further involve initiatives such as establishing reskilling hubs in rural areas, offering mobile training units for underserved communities, and co-developing AI-powered learning platforms. Such partnerships enable skill development to scale efficiently while directly addressing the unique needs of the Global South.

Digital Platforms: Accessible platforms that connect workers with training opportunities and funding sources can bridge gaps in workforce readiness. These platforms do not need to be limited to websites or apps; they can also operate via chatbots, which are highly accessible for marginalized communities with limited internet connectivity, low digital literacy, or financial constraints. Integrating gamification into these platforms makes learning engaging and fosters a sense of achievement, encouraging higher participation rates. India’s eSkill India platform, for example, integrates gamification and mobile accessibility to promote learning among its diverse population.

Adapting to the Global South’s Context

The Global South requires tailored strategies considering its unique socio-economic challenges. For instance, addressing digital infrastructure gaps, ensuring equal access to training for informal sector workers, and integrating reskilling efforts with broader educational reforms are crucial. Furthermore, leveraging Agentic AI itself to create personalized learning experiences can amplify the effectiveness of reskilling programs.

Conclusion

Agentic AI’s potential to revolutionize industries in the Global South is undeniable. However, realizing its benefits requires a holistic approach, with governments, industries, and international stakeholders collaborating to prioritize reskilling. By implementing strategic incentives, bridging skill gaps, and fostering inclusivity, nations can ensure technological progress leads to sustainable and equitable economic growth.

Tuhu Nugraha
Tuhu Nugraha
Digital Business & Metaverse Expert Principal of Indonesia Applied Economy & Regulatory Network (IADERN)