AI poses opportunities & challenges for jobs. The Economic Survey urges investment in education & workforce skilling
Chennai: Admitting that rapid advancement of artificial intelligence (AI) has posed unprecedented opportunities and challenges for labour markets worldwide, the Economic Survey calls for significant investments in education and workforce skilling. It also wants policymakers to watch out for potential impact on the labour market.
Education and skilling are going to play a critical role in driving the success of human-centric AI adoption while minimising labour displacement as best we can, Survey said.
Skills such as critical thinking, higher degrees of creativity, and the capacity for more specialised knowledge may be the new normal. India's employment challenge is raising the overall ‘quality’ of the workforce. Technology specific skills run the risk of becoming obsolete very soon, especially in today’s world where the requirements shift rapidly.
India’s demographic advantage and diverse economic landscape position it uniquely to benefit from AI. However, achieving these benefits requires significant investments in education and workforce skilling, supported by enabling, insuring, and stewarding institutions. These mechanisms can help workers adapt to changing demands while providing essential safety nets.
Policymakers have to pay attention to the evolving technological landscape and the potential impact it can have on the labour market. Inclusive institutions have a critical role in managing disruption and ensuring equitable outcomes. Barriers to large-scale AI adoption like concerns over reliability, resource inefficiencies, and infrastructure deficits along with AI’s experimental nature, have created a window for policymakers to act.
By fostering collaboration between policymakers, the private sector, and academia, India can align AI-driven innovation with societal goals.
The new opportunities from the spillover effects of AI will be known only once AI goes from experimental to practical. Till then policymakers, academia, and the private sector have to work together to raise the overall quality of human capital in India. This tripartite compact will ensure that the gains from productivity are distributed widely rather than concentrating in the hands of an increasingly oligopolistic sector.
