The advent of Artificial Intelligence (AI) brings a “huge pall of uncertainty” to the job market, affecting workers across all skill levels—low, semi, and high, according to the Economic Survey. It highlights AI as a significant disruptor poised to revolutionize the global economy, impacting India’s workforce as well.
The survey acknowledges growing concerns about AI’s impact on employment, emphasizing the need for a collaborative effort among the central and state governments, as well as corporates, to minimize disruptions. It warns that these disruptions could hinder sustained high growth rates for India in the coming years and decades.
Adapting to AI advancements is crucial for job protection. As AI integrates into various economic activities, the job market must evolve, steering technological choices towards collective welfare.
While AI has the potential to boost productivity, it also threatens employment in certain sectors. As AI systems become smarter and more widely adopted, the future of work will be reshaped. Routine tasks, such as customer service, will see high automation, while creative sectors will extensively use AI tools for image and video creation. Personalized AI tutors could reshape education, and healthcare could witness accelerated drug discovery.
India’s services exports, particularly the BPO sector, could be severely impacted by AI. Companies need to devise strategies to address this challenge. The corporate sector must consider ways AI can augment labor rather than displace workers. Studies suggest AI may restrain growth opportunities in business services, posing a challenge to long-term sustainability and job creation.
Despite these challenges, AI also presents opportunities for employment creation. India is an attractive destination for AI investment due to its relatively low operating costs and a large pool of skilled AI, machine learning, and big data workers. With a vast demographic dividend and a young population, India is uniquely positioned to navigate both the risks and opportunities posed by AI.
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