AI’s Uncertain Future: A Double-Edged Sword for India’s Job Market

The Economic Survey paints a complex picture of the impact of Artificial Intelligence (AI) on India’s workforce. While acknowledging AI’s potential to revolutionize the global economy and boost productivity, it also casts a “huge pall of uncertainty” over the future of work, with implications for workers of all skill levels – low, semi, and high.

AI Disruption and Job Market Transformation

The survey emphasizes that India would not remain immune to AI’s transformative effects. As AI systems continue to get smarter, routine tasks like customer service are likely to see a high degree of automation, while creative sectors will experience an influx of AI tools for image and video creation. Even sectors like education and healthcare could see significant shifts, with personalized AI tutors and accelerated drug discovery.

Balancing Progress and Protection

The growing concerns around the impact of AI on employment necessitate a concerted effort to minimize disruptions and adapt to advancements. The survey highlights that steering technological choices towards collective welfare is key to protecting jobs and ensuring sustained high growth rates for India in the coming decades.

Services Sector: A Mixed Outlook

The survey also predicts that AI’s growth could disrupt employment in certain sectors and restrain growth opportunities for business services progressively. This poses a particular challenge to India’s services exports, especially the BPO sector, which could be adversely affected by AI’s rise.

Navigating the Path Forward

Despite the challenges, the survey notes that AI presents both risks and opportunities for India. The country’s vast demographic dividend and young population place it in a unique position to leverage AI’s potential while mitigating its risks.

While AI could create barriers and hurdles to growth, it also offers the chance to create new employment opportunities. India’s relatively low operating costs and world’s second-largest pool of highly skilled AI, machine learning, and big data workers make it an attractive destination for AI investment.