AI and the Future of Work in India

The rise of artificial intelligence (AI) will significantly impact the job market and the skills needed to thrive in the rapidly changing job environment in the coming years. According to the World Economic Forum, AI will create over 97 million new job roles and displace 85 million jobs by 2025. The Future of Jobs Report 2023 predicts a near 40 percent increase in AI and machine learning specialists by 2027, along with a significant rise in demand for data analysts and information security analysts. While AI promises increased efficiency and productivity, it also poses a threat to existing jobs. For instance, Paytm’s 1,000 layoffs due to AI automation and Google’s AI campaign manager
replacing thousands of human sales personnel.

In the current public discourse, due to its recent progress generative AI – a subset of AI- is being equated with AI. While generative AI technologies, like GPT-3 and DALLE-2, are advancing rapidly, providing low-cost, high-value solutions, they also pose risks, such as potential inaccuracies, cybersecurity concerns, and intellectual property issues, which calls for the need to mitigate these risks by adopting certain regulatory measures and ethical guidelines. Other challenges involve rising skill gap, wage inequality and the challenge of transition.

Despite these challenges, AI should be seen as a force to be harnessed rather than an adversary. It is set to revolutionise various sectors by creating new job opportunities (such as AI Entrepreneur, AI Engineer, AI Research Assistant etc.) as well as transforming existing roles. Improved decision-making and upskilling opportunities are two other positive impacts of AI. To prepare for this future, initiatives like the National Artificial Intelligence Mission to support AI research and development and skill development programs have been launched by the
Indian government.

Going forward collaboration among workers, employers, and policymakers will be necessary to ensure AI’s benefits are maximised and challenges are effectively managed. Investment in education, training, and fostering a culture of lifelong learning will be crucial. India’s labour market, characterised by a surplus of young workers, many engaged in informal work, is ripe for the proliferation of AI-enabled platform models of work as well as to bear the brunt of job losses and obsolescence of jobs and skills with the increasing uptake of AI by employers. Automation is redefining worker-technology relationships, spatial fixes in global production networks, remote working, and employment relations. To thrive, workers will need to adapt, reskill, and upskill, fostering a resilient workforce for the future.

AI brings opportunities and challenges for the MSME sector, which are pivotal to the India economy and their adoption to digital technologies is crucial for India’s growth. The MSME Digital Index 2024 reports significant progress in technology adoption as 65% of small businesses using digital tools and AI have recorded a positive impact on operations and sales. Despite these advantages, MSMEs face significant challenges in adopting AI technology. High costs for technology infrastructure, software, and skilled personnel hinder adoption, with 36% struggling and 18% citing costs as a major barrier. Additionally, a lack of awareness about AI’s benefits and limited access to relevant training impede effective integration. To overcome these challenges, targeted support from governments and industry bodies is essential to provide affordable solutions and education, helping MSMEs navigate the AI landscape.

Aligned with this background, CUTS International is hosting a webinar to facilitate discussions on AI and the future of work in India. This webinar, part of the organisation’s project on Good and Better Jobs in India, aims to strengthen the discourse on inclusive economic growth with good and better jobs. The webinar aims to discuss:

• AI and the Indian Workforce: Jobs that will be adversely affected as well as created with the wider application of AI technologies.
• Upskilling and Reskilling Needs: Sector-specific forward-looking and flexible training programs to prepare the workforce for AI-driven changes.
• MSMEs and Digital Adoption: Addressing the challenges MSMEs face in leveraging digital tools and technologies for growth in the AI era.