If Used Wisely, AI Can Create 40 Lakh New Jobs In India

Alert by NITI Aayog of Job Loss and Opportunity

NITI Aayog alerted that India will lose nearly 20 lakh jobs in IT and BPO sectors until 2031 if AI is not utilized effectively. However, if the country develops enhanced human resource capabilities tailored to AI specifically, then over 40 lakh new job opportunities will arise.

This in the "Roadmap for Job Creation in the AI Economy" report, published by NITI Aayog CEO BVR Subrahmanyam on Friday. The report, while mentioning that AI will create job displacement in certain occupations, says that adequate utilization of the technology will enable people to shift to new ones. The report emphasizes that AI is not as much a job replacement question—it can create new ones if utilized appropriately.

Industries Most Affected by AI

  • Several industries will be affected significantly because of the use of AI, according to the report:
  • IT, BPO, and IT Services: Development of applications, maintenance, and infrastructure activities will be affected the most.
  • BPO Industry: Accounts, finance, customer service, and payroll departments can be affected by job losses.
  • Technical Services: Employment can go down from 80 lakh in 2023 to 60 lakh in 2031.
  • Customer Service: Jobs may decrease from 25 lakh to 18 lakh in the same period.

Action Plan to Prevent Job Losses and Facilitate New Opportunities

To avoid risks and realize the potential from AI, the report recommends a few steps:

  • Improve Computer Science Education: Improve computer science teaching and increase the quantum of AI professionals in India.
  • Enable Hyper-Specialization: Encourage high-end specialization in technical fields to facilitate creation of new job categories.
  • Leverage the India AI Talent Mission: Focus on professional upskilling in corporate AI, frontier AI, and other frontier-edge skills.
  • Communicate Across Industries: Get the government, industry, and schools to collaborate and address future workforce imperatives together.
  • Educate with AI: Enable AI education from schools through universities.
  • Attract Global AI Talent: Design programs to bring AI experts from around the world to India.
  • Establish Open Source AI Commons: Establish a national framework for promoting open access and innovation for building AI.