Economic Survey highlights AI's potential and challenges to future of work in India
July 22, 2024
Synopsis
According to the Economic Survey 2023-2024, the job market in India is being rapidly transformed by AI, IoT, and advanced technology, presenting both opportunities and challenges. While AI could boost productivity, it can also disrupt jobs.
The world is in the midst of a fourth industrial revolution, which is characterised by novel ways in which technology is getting embedded within societies. In the backdrop of this revolution, the future of job markets in India is undergoing a significant transformation, said the Economic Survey 2023-2024.
According to the survey tabled by Finance Minister Nirmala Sitharaman in Parliament on Monday, industrial processes across the globe are being redefined by various advanced technologies including IoT, big data, nano-technology, machine learning, AI, blockchains, genetic engineering, quantum computing, advanced analytics, automation and advanced manufacturing technology. The increase in technological advancements is creating a greater need for professionals skilled in areas like big data, AI, machine learning, cybersecurity and cloud computing.
The survey said that the biggest disruption of the future of work is the accelerated growth in AI, which is poised to revolutionise the global economy. India would not remain immune to this transformation. While AI has considerable potential for boosting productivity, the survey cautioned industry stakeholders that it also has the potential to disrupt employment in certain sectors. “India, with its vast demographic dividend and a very young population, is uniquely situated as AI poses both risk and opportunity,” said the survey.
According to AR Ramesh, CEO, TeamLease Degree Apprenticeship, as artificial intelligence (AI) and automation increasingly transform industries, productivity remains a fundamental challenge for the workforce. However, AI will enhance efficiency and effectiveness across various sectors. "The future of jobs will hinge on skill-based education and the integration of these technologies. To leapfrog into this new era, India must blend the confluence of skills and education, emphasising the development of creativity, critical thinking, problem-solving and complex communication skills that augur well with AI's capabilities," Ramesh said, stressing that the education system must evolve to provide students with both technical and soft skills.
Given the affinity of India’s population to work with technology, proactive interventions by the government and industry can position India as a key player in the AI age, the economic survey stated, adding employees or job seekers would need skills beyond communication, collaboration, and presentation, such as analytical thinking and innovation.
According to Teamlease's Ramesh, while AI will automate certain roles, it will also create new opportunities in fields such as AI system design, data analysis, cybersecurity, machine learning, and technology implementation, along with roles in maintenance, oversight and user support. He further opined that India's focus on sustainability will drive demand for "green jobs" in renewable energy, green infrastructure, and environmental conservation, as well as sunrise sectors like drones, solar technology, and electric vehicles. By prioritising skill-based education and investing in human capital, he added India can ensure a workforce that is agile, skilled and poised to capitalise on the transformative opportunities presented by AI and automation.
Echoing a similar view, Manoj Nair, Head of Global Delivery Centres, Fujitsu, said, “With close to 25% of the global workforce coming from India over the next decade, skill development and empowerment should be a strategic imperative. A skilled workforce is crucial for economic development. As technology rapidly advances, we need to prepare young people with a mix of education and skills to help meet the needs of our economy. Now is the time to bolster digital literacy by establishing dedicated centres of excellence. Another area that calls for a greater emphasis is research and development (R&D) initiatives, elevating AI use cases and intellectual property creation. By accelerating AI innovation, we can enhance the country’s technology development ecosystem.”
[The Economic Times]
