AI could cost India millions of tech jobs: NITI Aayog
What's the story
India's tech and services sector may witness major job losses due to artificial intelligence (AI) by 2031, a report by NITI Aayog has warned. However, the think tank also sees an opportunity for the creation of up to four million new jobs in the next five years. The report was released on Friday along with an action plan to mitigate potential job losses caused by AI.
Job impact
Tech services sector headcount may drop
The report, titled 'Roadmap for Job Creation in the AI Economy,' was authored by NITI Aayog CEO BVR Subrahmanyam. It notes that if India continues with its current business model, it could face a major downside. In this worst-case scenario, the headcount in the tech services sector could drop from 7.5-8 million in 2023 to six million by 2031.
AI initiative
National AI Talent Mission proposed
To turn disruption into opportunity, NITI Aayog has proposed the launch of a National AI Talent Mission. This ambitious, nationally coordinated effort aims to make India the world's capital for the AI workforce. The report warns that "AI is advancing faster than policy, curriculum, and skilling cycles can adapt." It cautions that without timely action from India, there could be irreversible job losses in its flagship Tech Services sector.
AI challenges
Existing factors that worsen risk of AI
The report highlights three existing factors that worsen the risk of AI in India: high job displacement risk, gaps in India's computer science education, and a lack of AI talent. However, it also argues that if India plays its cards right, AI will create upward tailwinds in the long run. This would unlock new roles, technology, and use cases for the country.
Strategic approach
Roadmap envisions mission-mode approach based on 3 key pillars
Subrahmanyam stressed the need for urgency, vision, and coordination to leverage India's strength of over nine million technology and customer experience professionals. The roadmap envisions a mission-mode approach based on three key pillars: embedding AI across the education system to make it a foundational skill in schools, universities, and vocational programs. It also calls for better open data, benchmarks from the government to utilize India's potential tech talent effectively.