'A huge pall of uncertainty': Economic Survey 2024 sees a risk to jobs from AI, unless...

The Economic Survey 2024 has raised a red flag on the rapid strides of artificial intelligence (AI) and its potential to disrupt the job market. 

As AI technology reshapes industries, it poses significant challenges to workers across all skill levels and threatens to hinder the country's economic growth. Addressing these issues requires a concerted effort from the government, private sector, and other stakeholders to ensure sustainable development.

"The advent of Artificial Intelligence casts a huge pall of uncertainty as to its impact on workers across all skill levels – low, semi and high. These will create barriers and hurdles to sustained 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."

AI and automation are not confined to the traditional IT firms. Software engineers with expertise in these fields are increasingly gravitating towards tech start-ups, diversifying the employment landscape. 

However, this shift brings both opportunities and challenges. While AI can drive efficiency and innovation, it also poses the risk of job displacement, particularly in sectors heavily reliant on routine tasks.

The services sector, a major pillar of India's economy, faces specific threats from AI. The Economic Survey notes that AI could limit growth opportunities in business services, posing a significant challenge to job creation and the long-term sustainability of the sector. 

The study emphasizes the importance of well-functioning cities for the growth of services, especially those with global market potential. Urban infrastructure and planning must therefore be aligned with technological advancements to foster a conducive environment for service sector growth.

To mitigate the negative effects of AI on the job market, the Economic Survey calls for a collective effort to steer technological choices towards collective welfare. This includes adapting the labour market to the changing technological landscape and ensuring that the benefits of AI are broadly shared. The government, along with the private sector, needs to develop strategies to reskill and upskill workers, enabling them to thrive in an AI-driven economy.