Artificial Intelligence is redrawing global economies and redefining business operations. AI promises efficiency and increased growth, but its impact on jobs is proving to be one of the biggest concerns. Experts warn of jobs lost, and varying dynamics in the workforce due to automation becoming the center stage.
Youth Unemployment
The latest Periodic Labour Force Survey for India has reported an alarming 17% unemployment rate for the 15-29 years' age group for the January-March quarter. And if this adoption of AI is going to speed up, this might be worse. Kristalina Georgieva, the IMF's Managing Director, lately referred to this impact of AI on the labor market as a "tsunami" while speaking in the context of impacts forecasted within two years. She stated that advanced economies will be worse off as their 60% of jobs will be lost and 40% globally will be at risk within those two years. A report by Goldman Sachs estimates that AI could replace 300 million jobs worldwide. One-fourth of all jobs could be fully automated will impact sectors ranging from customer service to administrative roles. In the UK alone, AI will affect 8 million jobs and place 11 percent of tasks in 22,000 job types already exposed to automation. India's IT industry has over 54 lakh professionals and could face severe challenges. Already, the industry is adjusting to these changes. On the other hand, experts like Ray Wang have also predicted "white-collar recession" to occur in India by 2027, which will be driven by AI and automation.
Preparing for the AI-Driven Future
With AI, there is a need for a strong strategy to navigate the challenges it poses. It requires policymakers, industries, and academia to pool together efforts to downplay job loss and work towards solutions to harness AI's potential.
- Type of Job Affected by AI
Understanding the quantum of job displacement will help devise more pinpointed interventions.
- Reskilling and Alternate Career Pathways
There is an urgent requirement for large-scale reskilling programs to be invested upon by governments as well as businesses. This would facilitate companies to upskill their people and create alternative roles for them.
- Education Reform for an AI-Ready Workforce
initiatives should be scaled up to ensure inculcation of AI-oriented curricula in school education up to higher education level. This is in preparation for the next generation that may be ready for a variant of an AI-driven economy.
Inputs by Agencies
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