AI AS CATALYST TOWARDS VIKSIT BHARAT: WHERE DOES IT STAND?

In recent years, India has witnessed an unprecedented surge in AI development.

- RAJESH MEHTA & RAHUL JHA

The government’s allocation of $1.25 billion to boost AI growth and tech giants like Microsoft committing to train 2 million Indians in AI by 2025 are testament to this trend. However, amidst this optimism, concerns about job market disruptions loom large, creating a complex scenario for policymakers and stakeholders.

The Double-Edged Sword of AI: AI presents a paradox of opportunity and challenge. On one hand, AI drives job creation across sectors. Investments and incentives are fuelling the growth of generative AI, with projections of over 500 new AI-based start-up jobs by 2025 as per T-Hub, a startup incubator. Both startups and large corporations are developing AI solutions that not only create jobs but also enhance job quality and inclusivity.

Conversely, there is palpable anxiety about job displacement. According to the Microsoft Work Trend Index 2023, over 74% of Indian workers fear losing their jobs to AI. This fear is not baseless, as automation and AI could potentially replace routine and low-skill jobs, disrupting the traditional job market. The World Economic Forum’s Future of Jobs Report claims that some 23% of jobs are expected to change by 2027, with 69 million new jobs created and 83 million eliminated globally, leading to a net reduction in jobs. This has a direct impact on labor-intensive job markets such as India.