The rise of artificial intelligence (AI) could cast a “huge pall of uncertainty” on workers across various sectors in India, according to a recent report by The Economic Survey.
Tabled in Parliament on Monday, this is perhaps the first time a government document has officially highlighted the impact AI could have on jobs in India. Prepared under the guidance of chief economic advisor V Anantha Nageswaran, it presents a somber picture and starkly contrasts the veneer of pragmatic optimism most Indians feel towards new technology.
“While AI has considerable potential for boosting productivity, it also has the potential to disrupt employment in certain sectors,” the Survey wrote.
Which sectors will be the most affected by AI?
Taking note of news and updates from India and the world, the Economic Survey 2023-24 has formed conclusions about the potential effect of AI in various sectors, be it disruptive or complimentary:
1. Manufacturing Sector: The manufacturing sector is probably less affected by AI because industrial robots are not as flexible or cost-effective as human labor.
2. The Inventory and Supply Chain: AI in inventory and supply chain management is more likely to complement human labor rather than replace it.
3. BPO Sector: The BPO sector is particularly at risk with the advent of AI, with artificial intelligence revolutionizing routine cognitive tasks through chatbots, potentially leading to significant job declines over the next decade.
4. Healthcare, Weather, and Education: AI can bridge development gaps by identifying health risks from digital health data, predicting weather, and assisting teachers in grading and translating texts.
5.The Services Sector: Widespread AI adoption in the services sector could significantly reshape or even replace jobs.
The report also questioned the climate impact of AI, which needs a large amount of electricity and water to run data centers around the clock.
What can be done about it?
Highlighting the growing concerns around the impact of AI and its potential to affect workers “across all skill levels – low, semi and high,” the Economic Survey emphasized the need to protect jobs.
“With AI taking roots in several spheres of economic activity, job market must adapt while steering the technological choices towards collective welfare is key,” it said.
The Survey likewise proposed that a concentrated effort is required between the center, states and corporates to minimize its potentially disruptive impact in the country. “These will create barriers and hurdles to sustain high growth rates for India in the coming years and decades. Overcoming these requires a grand alliance of union and state governments and the private sector.”
