The increase in artificial intelligence (AI) has affected industries and job roles, leading to concerns about its impact on labour markets. This study investigates AI’s effect on employment and wages within the ASEAN region by using a patent-based measure of AI exposure. The results show that while AI typically displaces jobs, the impact differs by country. Most ASEAN countries experienced a reinstatement effect, except Indonesia and Thailand where displacement occurred, and Singapore which showed a complementarity effect. Education is identified as an important policy tool to mitigate AI’s negative impacts on the labour market, promoting job complementarity.