Context:
The Economic Survey 2024-25 emphasizes the threat of Artificial Intelligence (AI) in the workplace and calls for proactive measures to prepare workers for the social and economic impacts of job automation. Both the government and private sector must collaborate to introduce AI efficiently.
Role of the Government and the Private Sector in AI Adoption
- Balanced Introduction of AI
- It emphasizes that both sectors must adopt AI in a balanced manner in order to limit job losses and the social fallout of automation.
- Safety Nets by Governments
- The role of governments in such an event will be to establish safety nets for workers if private companies are not able to deal with the issue at hand without causing economic harm through overregulation.
Teamwork for Inclusive Transformation
- Intersectoral Cooperation
- The government private sector and academia could collaborate to ensure AI related innovation is aligned with societal objectives for a sustainable inclusive transformation.
- Institutional Quality
- Better quality institutions can prepare workers for AI by providing upskilling training and mentorship in preparation for the shift in the job landscape.
AI related Job Losses
- Approximate loss of jobs
- 75 million jobs at risk globally due to automation. (International Labour Organization)
- 300 million jobs will be susceptible to AI-driven automation. (Goldman Sachs)
- 30% of today’s available work hours could be automated by generative AI by 2030. (McKinsey)
- Reduction of Risks
- The Survey asks for cautious application of AI keeping worker flexibility intact and having prepared new jobs and roles.
Social Acceptability and Transparency
- Transparency and Accountability
- Policymakers should focus on transparency and accountability for AI technology to check biases and ensure it is socially acceptable.
- Stewarding Innovation
- Stewarding AI doesn’t mean impeding innovation instead it ensures it is guided to improve society without adverse side effects.
Narrowing the Gender Gap with Digital Economy
- Prospects for Women
- The digital economy provides a possibility for the seamless integration of gender gaps so that women can bridge the gaps such as lack of equal access to education, fewer job opportunities and cultural biases.
- Empowerment through Remote Work
- Being flexible remote work and digital jobs empower women from developing countries especially with regard to financial independence and increased empowerment.
Challenges and Opportunities
- Institution Building to Support the Workforce
- India has time to build the right institutions to support the workforce through AI adoption focusing on overcoming barriers like investment shifts changes in education and the quality of labor.
- AI at the Edge RealWorld
- Applicability of AI Even though AI models like large language models can be excellent performers in benchmarks their real world applicability leaves much to be desired particularly in industries such as self driving cars where efficiency must come at a lower social cost.
