July 26, 2024
Speaking on the occasion, Dr. Prodipto Ghosh discussed that the rise of AI is reshaping the job market and skill requirements, particularly affecting India’s large pool of young, informal workers. Although AI can create new employment opportunities for the skilled workforce, it poses significant threats to democracy and the informal workforce, especially the low-wage groups.
Maximising AI’s potential through public-private collaborations, industry-specific skill development, and adherence to labour regulations with preventative occupational measures could result in advantages that outweigh the disadvantages, says Pallavi Sondhi, Senior Associate at Ikigai at the CUTS webinar on “AI and the Future of Work in India”.
The webinar was organised with the intent to delve into the multifaceted impacts of AI on the Indian workforce and economy. It acted as a platform to explore how AI will create and transform jobs, addressing the pressing needs for upskilling and reskilling, and examining the unique challenges and opportunities that AI presents for the MSME sector, which is pivotal to India’s economic growth.
Ipsita Roy, Assistant Professor at NIT Rourkela, rightly pointed to the essential need for community engagement in order to re-skill and upskill India’s informal workforce, thus helping them adapt to AI advancements and remain competitive in a fast-changing environment.
Further, it is highly important to note that as AI will eventually produce more jobs and reshape India’s labour force, the immediate effects on the informal workforce must be addressed by establishing accessible social security plans in conjunction with the business. According to Sanchita Chatterjee, Fellow at CUTS, research from the organisation shows that 22 percent of gig workers feel they lack training to access information on available social protection measures.
Satyaki Ray, Associate Professor at ISID, highlighted that India is grappling with a skills gap issue, where there’s a growing divide between the workforce displaced by technological advancements and the skills in demand due to the increasing adoption of technology.
Sangeeta Gupta, Senior VP and Strategy Officer at NASSCOM, added that if effective mitigation measures are put in place, the nation might see a positive multiplier effect on the economy through higher consumption levels. To ensure that responsible AI practices are well understood by MSMEs and the informal sector, it’s crucial to prioritise raising awareness, identifying appropriate AI toolkits for different industries, and providing targeted capacity-building. India might consider examining Singapore’s sandbox approach to tools for MSMEs as a model.
It is worth noting that eventually AI will create more jobs and transform India’s labour force. The government must address AI’s short-term impacts on the informal workforce by designing social security schemes in collaboration with industry as emphasised by Anulekha Nandi from ORF.
While we may not have all the solutions yet, timely discussions are essential for managing AI’s short-term risks and fostering sustainable economic growth. CUTS International’s webinar was a key step in exploring AI’s impact on the job market, especially for MSMEs facing challenges with digital adoption. Panellists have rightly highlighted that AI’s rise presents opportunities for new careers and skills. By embracing risk-taking and rapid learning, we can transform this transition into a driver of economic progress rather than a threat.
For further details, contact to:
Deepmala Ghosh, Research Associate, dgh@cuts.org
Tasmita Sengupta, Research Associate, tse@cuts.org