'Those who stay in denial...': CRED founder Kunal Shah predicts a harsh AI reality

Kunal Shah, founder of CRED and co-founder of Freecharge, has a stark warning: “Every expert has to become AI native to remain relevant. Those who stay in denial will be left behind.”

India’s Economic Survey echoes his concerns. With automation threatening millions of jobs in a labour-heavy economy, the government is weighing an AI tax to cushion the blow. A January 2024 IMF report suggests such measures could help fund reskilling programs and protect economic stability.

The survey calls AI a double-edged sword—offering “unprecedented opportunities and significant challenges.” India’s vast workforce and low wages make job displacement a bigger risk than in wealthier nations. The government’s AI roadmap, which includes semiconductor incentives and homegrown AI models, aims to balance innovation with job preservation.

Not everyone agrees with an AI tax. “Any nation that even flirts with punishing companies for using AI will be left behind irreversibly,” warns Gaurav Parab, principal research analyst at UK-based NelsonHall. Bloomberg reports that banks—early AI adopters—could slash 200,000 jobs in the next 3–5 years. Indian IT giants like TCS and Wipro admit AI is already slowing hiring.

Still, some see opportunity in reskilling. “AI’s promise lies in augmented intelligence—leveraging both human and machine capabilities,” says Nitin Bhatt, technology sector leader at EY-India. The survey urges a three-way collaboration between government, industry, and academia to ensure AI’s benefits are widely shared.

For now, AI taxation remains a proposal. But as automation reshapes industries, India’s ability to adapt—through regulation, innovation, or workforce transformation—will determine its economic future.