The Economic Survey 2024-25 has issued a stark warning: artificial intelligence (AI) is no longer a futuristic concept but a transformative force that threatens to render human labour increasingly redundant. While proponents of AI argue that it will unlock new opportunities and drive innovation, the pressing concern is whether the workforce can be reskilled swiftly enough to remain relevant in an AI-dominated economy. The widening gap between the rapid evolution of AI and the slower pace of human adaptability risks creating an insurmountable divide, leading to widespread economic displacement and social upheaval.
AI’s disruptive potential is both profound and pervasive. The Indian government has acknowledged this reality by investing in GPUs and foundational AI models, signaling its intent to compete in the global AI race. However, the implications of this technological shift extend far beyond low-skilled jobs. Automation is poised to encroach upon middle and high-end professions, including law, journalism, finance, and even medicine. If AI can code, analyze data, reason, and generate creative content, the value of human expertise in these fields will inevitably diminish. The harsh truth is that only those with highly specialized skills or uniquely human capabilities—such as emotional intelligence, creativity, and complex decision-making—will remain indispensable in the workforce. The speed at which AI is advancing poses an unprecedented challenge. Historically, technological disruptions have created new job opportunities, but the transition has often been fraught with economic pain and social dislocation. AI, however, operates on a different scale. Its ability to learn, adapt, and improve autonomously means that even upskilling initiatives may struggle to keep pace. For instance, AI-driven diagnostic tools are already outperforming human doctors in detecting diseases with greater accuracy and speed. Routine medical consultations, once the domain of general practitioners are increasingly being replaced by algorithmic recommendations. This raises troubling questions about the sustainability of medical education, which requires significant financial investment, if the earning potential of doctors is eroded by AI. Similarly, professions such as accounting, graphic design, and data analysis—once considered secure—are now facing existential threats. The Economic Survey rightly underscores the urgent need for policymakers to address this looming crisis. While it highlights the importance of developing social institutions and skilling programs, the government’s response must be both immediate and transformative. Piecemeal efforts will not suffice. What is required is a fundamental reimagining of education, labour policies, and economic structures to mitigate the disruptive impact of AI on employment. For instance, educational curricula must prioritize critical thinking, creativity, and emotional intelligence—skills that are less susceptible to automation. Additionally, labour policies must incentivize lifelong learning and provide robust support systems for workers transitioning to new roles. The optimism surrounding AI’s potential to create new jobs is not entirely unfounded, but it overlooks the scale and speed of the disruption. Unlike previous technological shifts, AI does not merely augment human capabilities—it replaces them. This raises the spectre of a future where human labour becomes increasingly obsolete, exacerbating economic inequality and social stratification. Without large-scale intervention, we risk entering an era where a significant portion of the population is rendered economically irrelevant, leading to widespread discontent and instability. India’s policymakers must act with urgency and foresight. The AI revolution is not a distant possibility but an unfolding reality that demands immediate action. The government must prioritize investments in education and skilling, foster public-private partnerships to drive innovation and implement policies that promote equitable access to opportunities in the AI-driven economy. Moreover, social safety nets must be strengthened to support those displaced by automation, ensuring that the benefits of AI are distributed more equitably.
The stakes are high, and the window for action is narrow. If India fails to address this challenge head-on, it risks not only economic stagnation but also social fragmentation. The AI revolution presents both a threat and an opportunity. The choice before us is clear: embrace transformative change or risk being left behind in an era where human labour is no longer the cornerstone of economic value. The time to act is now.