Artificial intelligence: AI and Jobs, A Double-Edged Sword for India's Workforce

Artificial Intelligence (AI) is rapidly revolutionizing every sector, sparking a global debate: will this accelerating technology displace millions of workers, or will it unlock unprecedented opportunities? Recent data suggests AI's impact is indeed a double-edged sword, presenting both significant challenges and vast potential.

AI's Impact on Employment

According to the World Economic Forum's 2023 report, AI could eliminate tens of millions of jobs globally by 2027, but simultaneously create twice as many new positions. This implies a net gain, though transitional unemployment could rise. India's situation is particularly complex. An Oxford University study suggests a majority of the country's jobs could be affected by automation, while sectors like data entry, customer service, and manufacturing have seen thousands of roles disappear due to chatbots and robots. For instance, in 2024, Amazon laid off thousands of employees after adopting AI-based systems, and an Indian IT company cut 5,000 jobs due to AI tool implementation, while ministry of Labor data for 2024 shows unemployment near 8%, with a high proportion of youth. Experts believe AI could exacerbate this issue, especially for unskilled workers.

New Avenues and Opportunities

Conversely, AI is actively generating new employment. Reports indicate a more than 40% surge in demand for roles such as Machine Learning Engineers, Data Scientists, and AI Ethics Specialists. In India, the AI sector is projected to create millions of jobs by 2025, with tech giants like Google and Microsoft establishing training centers to meet this growing demand. In healthcare, AI diagnostic tools have assisted doctors, leading to thousands of new associated jobs. Similarly, AI applications in agriculture have boosted farmer productivity and fostered new Agri-Tech positions.

The Imperative of Skill Development

Experts warn that without adequate preparation, AI's impact could be detrimental. IIT professors emphasize India's urgent need to reskill millions of its workforce, while the government's 'Skill India' initiative is addressing this by aiming to train millions of youth in AI skills. An International Labor Organization report highlights that nations investing early in skills development will reap the maximum benefits from AI, citing examples like Sweden and Singapore, which have maintained minimal unemployment through strong training programs.

Author: Tejpal Singh Shekhawat, Didwana, Rajasthan