Impact of AI on Jobs in India

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The impact of Artificial Intelligence (AI) on jobs in India is multifaceted, encompassing both opportunities and challenges across various sectors. Here’s an overview based on the latest reports:

Positive Impacts: Job Creation and Productivity Gains

    • Surge in AI Talent Demand: India is projected to require approximately 1 million AI professionals by 2026 to meet the growing integration of AI technologies across sectors.

    • Generative AI (GenAI) Transformation: EY India forecasts that GenAI will transform 38 million jobs by 2030, leading to a 2.61% productivity boost in the organized sector and an additional 2.82% in the unorganized sector .

    • Emergence of New Roles: The ServiceNow AI Skills and Jobs Report indicates that emerging technologies will generate 2.73 million new tech jobs by 2028, with the retail sector leading in employment growth 

Challenges: Job Displacement and Skill Gaps

    • Impact on Entry-Level IT Jobs: The Economic Times highlights that AI automation has led to job losses among young software engineering graduates, disrupting their career aspirations.

    • Shortage of Skilled Workers: The electronics manufacturing sector faces a dual crisis with a lack of both blue-collar workers and skilled engineers, exacerbated by the adoption of AI and robotics technologies.

Workforce Adaptation: Reskilling and Upskilling Initiatives

    • Corporate Reskilling Efforts: According to LinkedIn’s Workplace Learning Report, 94% of Indian companies plan to enhance their employees’ skills in 2024, focusing on both technical and soft skills to thrive in the AI era .

    • Shift Towards Skills-Based Hiring: A report by Coursera reveals that 99% of Indian employers are prioritizing GenAI skills over traditional experience, with 95% more likely to hire candidates holding micro-credentials in GenAI 

While AI presents significant opportunities for economic growth and job creation in India, it also poses challenges related to job displacement and skill mismatches. Proactive measures, including targeted reskilling initiatives and a focus on skills-based hiring, are essential to ensure that the workforce can adapt to the evolving job landscape.