Author(s): Sakshi Bali
Paper Details: Volume 3, Issue 2
Citation: IJLSSS 3(2) 34
Page No: 377 – 385
ABSTRACT
Artificial Intelligence (AI) is increasingly reshaping the global employment landscape, with profound implications for economies like India. As AI-driven technologies—ranging from machine learning to robotics—are integrated into diverse sectors such as healthcare, agriculture, finance, and manufacturing, they offer significant opportunities for increased productivity, job creation, and innovation. In India, a country characterized by its demographic diversity and rapidly evolving economy, AI’s dual impact is evident: while it is generating new high-skilled employment opportunities, it is also leading to displacement in routine, low-skill job sectors.
This article examines the multifaceted influence of AI on employment in India. It explores positive trends, such as the emergence of AI-based roles, improvements in job quality, and the empowerment of small and medium enterprises through accessible AI tools. At the same time, it addresses key challenges, including job displacement, widening skill gaps, and ethical concerns surrounding AI deployment. Government initiatives such as the National Strategy for Artificial Intelligence, Skill India Mission, and educational reforms under NEP 2020 are critically evaluated for their role in preparing the workforce for an AI-driven economy.
The article also presents sectoral case studies highlighting the transformative role of AI in agriculture, healthcare, and financial services. It concludes with forward-looking insights on how AI, coupled with Industry 4.0 and smart city initiatives, can be harnessed for sustainable and inclusive growth. Through policy support, upskilling initiatives, and ethical frameworks, India has the potential to navigate the AI transition while safeguarding employment and equity.
Keywords:- Artificial Intelligence (AI), Employment in India, Job displacement, Skill development, AI in agriculture, AI in healthcare, AI in finance, Government initiatives, Ethical AI, Industry 4.0, Smart cities, Reskilling and upskilling, National Strategy for AI, AI-driven automation, Future of work.
INTRODUCTION
Artificial Intelligence (AI) has emerged as a transformative force across various sectors worldwide. As industries adopt AI technologies like machine learning and robotics to boost efficiency, concerns arise about employment. While AI can create new roles and transform existing ones, there are fears of job displacement as AI automates tasks traditionally done by humans[1].
An IMF analysis reveals that nearly 40% of global employment is exposed to AI. In advanced economies, around 60% of jobs could be affected, with half benefiting from AI integration and the other half facing reduced labor demand, potentially leading to job losses and lower wages[2].
Conversely, emerging markets and low-income countries have lower AI exposure rates of 40% and 26%, respectively, suggesting fewer immediate disruptions. However, these nations often lack the infrastructure and skilled workforce to harness AI’s benefits, which could worsen global inequality over time. Overall, AI presents both challenges and opportunities for the future of work[3].
In India, a country characterized by its vast population and burgeoning economy, AI’s influence on employment is particularly significant. This article delves into the multifaceted impact of AI on employment in India, exploring both the opportunities and challenges it presents.
THE ADVENT OF AI IN INDIA
AI IN DIFFERENT SECTORS
AI has been integrated into numerous sectors in India, including healthcare, agriculture, finance, and manufacturing. In healthcare, AI-driven diagnostics and treatment recommendations are enhancing patient care and operational efficiency. The agricultural sector is leveraging AI for precision farming, which optimizes crop yields and resource usage. The financial industry employs AI for fraud detection, customer service automation, and personalized banking solutions. Manufacturing is witnessing the deployment of AI in predictive maintenance and quality control, leading to increased productivity[4]. The recently released Future of Jobs Report 2020[5] (WEF, 2020) has found that there has been a significant increase in the number of firms expecting to adopt non-humanoid robots and artificial intelligence in the near future. The Report further states that the artificial intelligence is finding wide adaptation among the sectors such as digital information and communications, financial services, healthcare, and transportation industries. It estimates that by 2025, “85 million jobs may be displaced by a shift in the division of labour between humans and machines, while 97 million new roles may emerge that are more adapted to the new division of labour between humans, machines and algorithms”.
GOVERNMENT INITIATIVES
The Indian government has recognized the potential of AI and has launched various initiatives to foster its growth. The National Strategy for Artificial Intelligence, known as #AIforAll, aims to guide the research and development of AI technologies, promote AI-related skills, and ensure ethical usage.[6] The Atal Innovation Mission (AIM) is a key initiative that promotes innovation and entrepreneurship in AI and automation. It has set up Atal Tinkering Labs in schools to inspire creativity and problem-solving among students, along with Atal Incubation Centers to support AI-driven start-ups.
In 2018, NITI Aayog launched the National Strategy for Artificial Intelligence, focusing on using AI for inclusive growth. The strategy identifies five key sectors for intervention: healthcare, agriculture, education, smart cities, and mobility. By targeting these areas, the government aims to harness AI’s potential to enhance development and improve citizens’ quality of life. Furthermore, NITI Aayog, the government’s policy think tank, has been at the forefront of implementing AI policies and collaborations with industry stakeholders to accelerate AI adoption.[7] While National Education Policy 2020 suggests greater use of technologies such as AI, it must be aligned with the demand of the job market. Considering the risk of job loss across industries, the government must embark on a life-long learning platform. Initiatives such as “FutureSkills PRIME” cover emerging technologies, including AI, which must be strengthened. YUVAi (Youth for Unnati and Vikas with AI), an initiative for familiarizing school students from classes 8–12 with AI technologies, should be expanded.[8]
POSITIVE IMPACTS ON EMPLOYMENT
JOB CREATION IN NEW DOMAINS
AI has the potential to create new job opportunities in fields that did not exist previously. As AI technologies evolve, there is a growing demand for AI specialists, data scientists, machine learning engineers, and AI ethicists. These roles require a high level of expertise and provide lucrative career options for individuals with the right skills.[9] Moreover, the AI sector is generating jobs in AI research and development, AI-driven product management, and AI training and support services.[10]
ENHANCED PRODUCTIVITY AND JOB QUALITY
Incorporating AI into various industries can significantly enhance productivity. For instance, in manufacturing, AI-driven automation and robotics streamline production processes, reducing errors and increasing efficiency. This shift can result in higher output with lower resource consumption. Additionally, AI applications in customer service, such as chatbots and virtual assistants, can handle routine inquiries, allowing human employees to focus on more complex and rewarding tasks.[11] Consequently, AI can improve job quality by enabling employees to engage in more meaningful work.
EMPOWERMENT OF SMES
Small and Medium Enterprises (SMEs) in India are leveraging AI to compete with larger corporations. AI-powered tools for market analysis, customer insights, and supply chain optimization provide SMEs with a competitive edge. By adopting AI, these enterprises can enhance their operational efficiency, expand their market reach, and create more job opportunities.[12]
CHALLENGES AND NEGATIVE IMPACTS ON EMPLOYMENT
JOB DISPLACEMENT
One of the most significant concerns regarding AI is job displacement. AI-driven automation can replace certain job roles, particularly those involving routine and repetitive tasks. For instance, roles in data entry, telemarketing, and basic customer support are susceptible to automation. This displacement poses a significant challenge, especially for workers in low-skilled positions who may find it difficult to transition to new roles without adequate reskilling.[13]
SKILL GAPS AND INEQUALITY
The rapid advancement of AI technologies necessitates a workforce with advanced technical skills. However, there is a considerable skill gap in India, with a significant portion of the workforce lacking the necessary qualifications for AI-related jobs. This gap can exacerbate economic inequality, as those with higher education and technical expertise reap the benefits of AI, while others are left behind.[14] Bridging this skill gap requires substantial investment in education and training programs focused on AI and related technologies.
ETHICAL AND REGULATORY CHALLENGES
AI’s integration into the workforce raises ethical and regulatory concerns. Issues such as data privacy, algorithmic bias, and the ethical use of AI technologies must be addressed to ensure fair and equitable outcomes. Additionally, there is a need for robust regulatory frameworks to govern AI deployment and protect workers’ rights in an AI-driven economy.[15]
MITIGATING THE NEGATIVE IMPACTS
EDUCATION AND RESKILLING
To address the challenges posed by AI, there is a pressing need for education and reskilling initiatives. The government, educational institutions, and private sector must collaborate to develop comprehensive training programs that equip the workforce with AI-related skills. These programs should focus on both technical skills, such as programming and data analysis, and soft skills, such as problem-solving and adaptability. Recently, Upskilling Trends Report 2024-25 released by a global ed-tech company Great Learning found that 67.5% of engineers feel their jobs are being negatively impacted by AI, while 87.5% believe that upskilling is critical to safeguarding their careers in the face of technological disruption[16].
Skill India Mission, launched in 2015 aims to equip workers with the skills necessary for the evolving job market. One of its flagship programs, the Pradhan Mantri Kaushal Vikas Yojana[17] (PMKVY), offers training in crucial areas such as AI, machine learning, robotics, and data analytics. By focusing on these emerging technologies, the mission seeks to enhance the employability of the Indian workforce. Digital India Mission focuses on digital literacy and promoting technology adoption across sectors.
Additionally, integrating AI education into the school curriculum can prepare future generations for an AI-driven economy.
PROMOTING INCLUSIVE GROWTH
Ensuring that the benefits of AI are equitably distributed is crucial for inclusive growth. Policies should be implemented to support workers affected by AI-induced job displacement. Social safety nets, such as unemployment benefits and job transition programs, can provide temporary relief and facilitate the transition to new employment opportunities. Moreover, initiatives that promote diversity and inclusion in the AI workforce can help mitigate inequality.
ETHICAL AI DEVELOPMENT
Developing and implementing ethical AI frameworks is essential to address concerns related to bias, privacy, and accountability. Organizations must adopt transparent and accountable AI practices, ensuring that AI systems are fair and unbiased. Regulatory bodies should establish guidelines and standards for ethical AI development and deployment. Public awareness campaigns can also educate the general population about the ethical implications of AI and their rights in an AI-driven society.
CASE STUDIES
AI IN INDIAN AGRICULTURE
Agriculture is a critical sector in India, employing a significant portion of the population. AI is transforming Indian agriculture through precision farming, predictive analytics, and automated machinery. For instance, AI-driven drones and sensors are used for crop monitoring, soil analysis, and pest detection. These technologies enable farmers to make data-driven decisions, optimize resource usage, and improve crop yields[18]. Consequently, AI is enhancing productivity and creating new job opportunities in agri-tech startups and AI-based farming solutions.
AI IN HEALTHCARE
The healthcare sector in India is leveraging AI to address challenges such as shortage of medical professionals, diagnostic accuracy, and patient management. AI-powered diagnostic tools, such as imaging analysis and predictive models, assist doctors in making accurate and timely diagnoses. Telemedicine platforms, driven by AI, enable remote consultations and improve access to healthcare services, particularly in rural areas[19]. This integration of AI in healthcare is not only improving patient outcomes but also creating jobs in AI development, healthcare informatics, and telemedicine support.
AI IN FINANCIAL SERVICES
AI is revolutionizing the financial services industry in India by enhancing customer experiences, improving risk management, and streamlining operations. AI-powered chatbots and virtual assistants provide instant customer support, reducing the need for human intervention in routine inquiries. Fraud detection systems, driven by AI algorithms, analyze vast amounts of transaction data to identify suspicious activities and prevent financial crimes. The adoption of AI in financial services is driving job creation in AI research, development, and implementation, while also necessitating the reskilling of existing employees to adapt to new technologies.
FUTURE PROSPECTS
AI AND INDUSTRY 4.0
The concept of Industry 4.0, characterized by the integration of AI, IoT, and automation, is set to revolutionize Indian industries. The manufacturing sector, in particular, is poised to benefit from AI-driven smart factories, predictive maintenance, and supply chain optimization. This transformation will require a workforce skilled in AI technologies, leading to the creation of new job roles and the need for continuous upskilling.
AI AND EDUCATION
The integration of AI in education can transform learning and teaching methodologies. AIpowered adaptive learning platforms can personalize education, catering to individual learning styles and paces. Intelligent tutoring systems provide personalized feedback and support, enhancing student engagement and outcomes. The adoption of AI in education will create opportunities for AI developers, educational content creators, and edtech entrepreneurs.
AI AND URBAN DEVELOPMENT
Smart cities, driven by AI, are becoming a reality in India. AI-powered systems for traffic management, waste management, and energy optimization are enhancing urban living conditions. These smart city initiatives are creating job opportunities in AI development, urban planning, and infrastructure management. Additionally, the implementation of AI-driven public safety systems and surveillance technologies is improving security and emergency response capabilities.
CONCLUSION
Artificial Intelligence is undoubtedly reshaping the employment landscape in India. While it presents significant opportunities for job creation, productivity enhancement, and economic growth, it also poses challenges related to job displacement, skill gaps, and ethical concerns. Addressing these challenges requires a collaborative effort from the government, industry, and educational institutions to ensure an inclusive and equitable AI-driven economy. By investing in education, promoting inclusive growth, and adhering to ethical AI practices, India can harness the full potential of AI while safeguarding the interests of its workforce.
[1] https://www.drishtiias.com/blog/impact-of-ai-and-automation-on-indias-employment-landscape
[2] https://www.thehindu.com/incoming/govt-concerned-about-ai-job-losses-but-india-strengthened-by-stem-grads-and-lack-of-white-collar-jobs-it-secy/article68187500.
[3] Ibid.
[4] Menon, N. (2018). Artificial Intelligence in India – hype or reality? Indian Journal of Science and Technology, 11(23).
[5] https://www.imf.org/-/media/Files/Publications/Fandd/Article/2020/December/WEF-future-of-jobs-report-2020-zahidi.ashx
[6] NITI Aayog. (2018). National Strategy for Artificial Intelligence #AIforAll. Government of India.
[7] Ibid.
[8] https://www.ris.org.in/sites/default/files/Publication/Policy%20brief-104_Amit%20Kumar.pdf
[9] Upadhyay, A., & Khandelwal, K. (2018). Applying artificial intelligence: Implications for job creation in India. Journal of Human Resource Management, 21(2), 12-21.
[10] Ibid.
[11] Bessen, J. E. (2019). AI and Jobs: The Role of Demand. NBER Working Paper No. 24235.
[12] Ibid.
[13] World Economic Forum. (2018). The Future of Jobs Report 2018.
[14] Ibid.
[15] Mittelstadt, B. D., Allo, P., Taddeo, M., Wachter, S., & Floridi, L.
[16] https://www.ris.org.in/sites/default/files/Publication/Policy%20brief-104_Amit%20Kumar.pdf
[17] https://www.ibef.org/government-schemes/pradhan-mantri-kaushal-vikas-yojana
[18] Georgios 2018. “The Impact of Artificial Intelligence on Employment”. In M. Neufeind, J. O’Reilly, and F. Ranft (Eds.), Work in the Digital Age. London: Rowman & Littlefield International
[19] Ibid.