Artificial intelligence (AI) is revolutionizing the global economy, with the potential to significantly impact prosperity worldwide. A recent Economic Survey highlights the importance of harnessing AI technology for collective benefit, emphasizing the need for employers to balance technological adoption with workforce considerations.

AI: Driving Economic Growth and Innovation

Emerging technologies like AI, decentralized finance, machine learning, and the Internet of Things (IoT) are poised to reshape various sectors, particularly the digital payments ecosystem. AI stands out as a crucial factor in determining the economic success of nations.

India’s Fintech Vision and Global Collaboration

India’s focus on becoming a “fintech nation” is evident in its thriving fintech sector and high adoption rates. The country’s robust digital infrastructure further strengthens this vision. As a founding member of the Global Partnership on Artificial Intelligence (GPAI), India actively contributes to responsible AI development and deployment.

Government Initiatives and Investment in AI

The Indian government has allocated significant funds to the IndiaAI mission, aiming to democratize AI innovation and bolster the country’s AI ecosystem. This, coupled with India’s large pool of skilled AI professionals and relatively low operating costs, makes the country an attractive destination for global AI investment.

Addressing Social Impact and Labor Market Disruptions

While AI offers immense potential for productivity enhancement, its social impact remains complex. The Economic Survey acknowledges that AI and other emerging technologies could disrupt labor markets, potentially leading to income inequality. The uncertainty surrounding AI’s impact on workers at all skill levels poses challenges for sustaining high growth rates in the years ahead.

To mitigate these challenges, a collaborative effort between the government and the private sector is crucial. By working together, India can address the social implications of AI while ensuring continued economic progress.