WILL AI BE AN ECONOMIC GAME-CHANGER?

The India Employment Report 2024, jointly published by the International Labour Organisation (ILO) and the Institute of Human Development (IHD), dropped a bombshell recently: a whopping 83% of jobless Indians are youth. Talk about a reality check!

Hold onto your seats, because the International Monetary Fund (IMF) has another eye-opening report. Shedding a light on the potential AI takeover in the global job market, IMF’s report suggests that nearly 40% of jobs worldwide may be impacted by AI. In advanced economies, that number jumps to 60%. It’s enough to make anyone break into a sweat!

However, amidst all this AI fear, there seems to be a silver lining. As automation and emerging tech encroach on mundane tasks, they’re also paving the way for a surge in high-skilled job opportunities. That means while some jobs might be on the chopping block, there’s a whole new frontier of employment opening up for those with top-notch skills.

While the debate rages on about AI snatching away our livelihoods, there’s another side to the story. Turns out, emerging markets and developing economies stand to gain big time from AI integration. According to a PwC report, AI could contribute up to $15.7 trillion to the global economy by 2030, more than the current output of China and India combined. Another report by Bank of America said the global revenue associated with AI software, hardware, service, and sales is projected to grow at 19% per year, reaching $900 billion by 2026, compared with $318 billion in 2020.

“Human civilisation has always been characterised by its ability to adapt and evolve in response to emerging trends and technological advancements. The Industrial Revolution is a testament to this adaptability, heralding a seismic shift in manufacturing processes, labour practices, and economic structures. Fast forward to the present day, and we find ourselves on the brink of another transformative era: the era of AI. With its ability to automate tasks, analyse vast amounts of data, and optimise processes, AI promises to revolutionise virtually every aspect of human endeavour. From healthcare and finance to transportation and entertainment, AI has the potential to reshape industries, enhance productivity, and unlock new frontiers of innovation,” said Ramesh Alluri Reddy, CEO, TeamLease Degree Apprenticeship.

By 2030, India is expected to have nearly 30 percent of the world’s workforce. IBM Institute for Business Value in its extensive report ‘Cognitive India’ stated how India’s economy benefits from strong entrepreneurship and diversity. With India projected to have the largest labour force globally, it stands to gain the most from AI technology that enhances worker productivity, it said. The report also highlighted how AI can boost the productivity of average workers to match top performers if they’re equipped with the right skills, capabilities and knowledge.

“India will surely contribute to job creation by AI. Since India has an extremely diverse demography, geography, and culture, India is well positioned to become an AI leader in the future. Also, the Indian government has launched schemes to boost AI start-ups in the country. However, one has to also acknowledge that many jobs in India are repetitive and are susceptible to automation by AI. Such people need to be re-skilled and hired in various other departments. Also, the education system needs to add courses on AI and the future of STEM in order to prepare the students for an AI-driven economy,” said Hariom Seth, founder, Tagglabs. He also believes in the AI-era, both blue and white collar jobs have tasks that can be easily automated by AI. However, the spare time can be used for re-skilling the workforce, thus leading to better collaboration between humans and AI.

In fact, Niti Aayog is working on a plan called #AIforAll to boost AI across different sectors like healthcare, agriculture, education, smart cities, and transportation. They’re also thinking about creating a National AI Marketplace, a central platform for sharing AI-powered solutions and data. This move aims to make AI accessible and beneficial for everyone in India.

“The exponential surge in AI adoption, projected to skyrocket to USD 28.8 billion by 2025 at an impressive CAGR of 45%, underscores India’s burgeoning technological landscape. This surge permeates various domains, including healthcare, finance, manufacturing, and retail, catalysing a seismic shift in operational paradigms and job roles. India’s remarkable 14-fold increase in AI-skilled individuals from January 2016 to June 2023 solidifies its position as a global frontrunner in nurturing AI talent,” said Reddy.

He further added that the Indian government’s allocation of Rs 10,000 crore towards AI research and development 2023 marks a pivotal milestone in “skill augmentation efforts”. The tech expert also vouches for degree apprenticeships, which are a powerful mechanism to bridge the gap between academic learning and real-world application. “By offering hands-on experience and tailored training, degree apprenticeships prepare individuals with the necessary skills and knowledge to thrive in industries undergoing technological transformations. These apprenticeships align with industry needs and provide practical exposure, ensuring a steady supply of qualified professionals equipped to drive innovation and economic growth in the AI-driven era,” said Reddy.

AI is making a big difference in India’s healthcare, agriculture, education and other sectors. AI helps find diseases early and makes personalised treatment plans, which means better care for patients and lower medical costs. Indian banks are using AI to spot fraud, improve customer service, and check how risky lending money might be. AI is being used to manage crops better, predict the weather, and control pests, which all help farmers grow more food. AI is revolutionising the education system too. With special learning apps and tests powered by AI, students can get lessons that fit them better. Also, AI can help people learn new skills for better jobs in the global economy.

Having said that, Seth believes the government policies promoting the use of AI is probably the “most important part for any country to become an AI economy”. “Policies should focus on revamping STEM education, focusing less on rote learning and more on transferable skills like critical thinking, communication, collaboration etc. Another focus should be on people directly impacted by the introduction of AI. The aim of AI should not be to displace workers but to make them more efficient. Therefore, re-skilling the workforce by employers should be a must,” said Seth of Tagglabs.