The biggest disruption for the future of work is the accelerated growth in artificial intelligence (AI), which is poised to revolutionise the global economy. India would not remain immune to this transformation, the Economic Survey 2023-24 tabled in Parliament on Monday stated.
As AI systems become smarter and more prevalent, the future of work will change significantly, said the economic survey prepared under the guidance of chief economic advisor V Anantha Nageswaran. “While AI has considerable potential for boosting productivity, it also has the potential to disrupt employment in certain sectors,” it added.
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How can AI benefit India?
If Generative AI significantly boosts the marginal productivity of labour in the right sectors, it can increase labor demand in non-automated tasks or industries producing complementary products. Automation can create new tasks and enhance productivity in new areas. However, the economic survey report added that political decisions are key to ensuring technology benefits everyone.
Routine tasks, including customer service, will likely witness a high degree of automation; creative sectors will see extensive usage of AI tools for image and video creation; personalised AI tutors can reshape education, and sectors like healthcare can witness accelerated drug discovery, it hoped.
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Which sectors are most affected by AI?
Attributing other research, Economic Survey 2023-24 notes that:
1. Manufacturing Sector and AI: The manufacturing sector is less affected by AI because industrial robots are not as flexible or cost-effective as human labour.
2. AI in Inventory and Supply Chain: AI in inventory and supply chain management is more likely to complement human labour rather than replace it.
3. BPO Sector at Risk: The BPO sector is particularly vulnerable, with generative AI revolutionising routine cognitive tasks through chatbots, potentially leading to significant job declines over the next decade.
4. AI in 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. AI in the Services Sector: Widespread AI adoption in the services sector could significantly reshape or even replace jobs.
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How will AI impact India’s future?
Given India’s tech-savvy population and strong digital infrastructure, proactive efforts by the government and industry can make India a key player in the AI age, the economic survey stated. However, it added, that workers and job seekers will need skills beyond basic communication and collaboration.
These include analytical thinking, innovation, complex problem-solving, critical thinking, continuous learning, technology design, programming, and resilience to thrive in the AI-driven future.