Why in news?
The Indian information technology (IT) industry is undergoing a significant transition because of rapid advances in artificial intelligence (AI). Many companies have announced workforce rationalisation and new hiring policies, prompting concerns about job security and the need to reskill millions of employees.
Background
- Since the 1990s, India’s IT services sector has grown by providing low‑cost programming and back‑office services to global clients. Recent advances in AI and automation now allow machines to perform tasks like coding, testing and customer support, threatening traditional business models.
- Market research suggests that more than half of the tasks performed in IT services can be automated. Large Indian firms have already announced thousands of job cuts and are investing in AI‑driven products.
- The government launched a National AI Mission in 2023 to foster innovation, develop ethical guidelines and train youth in emerging technologies.
Opportunities
- Indian companies can reposition themselves as partners for global clients by offering customised AI solutions, especially in areas like healthcare, finance and agriculture.
- Specialist roles such as data scientists, AI ethicists, domain experts and algorithm engineers will be in high demand. Upskilling programmes can help existing workers move into these roles.
- India’s youth demographic and existing digital infrastructure give it an advantage in building large datasets and experimentation platforms.
Challenges
- There is a real risk of job losses in repetitive work like software testing, technical support and system maintenance. Smaller firms may struggle to finance reskilling programmes.
- Ethical and legal issues arise around privacy, bias and accountability. India lacks comprehensive data protection legislation and sectoral guidelines for AI deployment.
- High‑quality research institutions and deep‑tech startups are still few, so India often depends on foreign technology platforms.
Government and industry efforts
- The National AI Mission and Digital India programmes support research institutes, incubators and funding for AI startups.
- Public‑private partnerships for AI training, internships and apprenticeships are being expanded. The All India Council for Technical Education has revised curriculum to include AI, machine learning and data science.
- Regulators are drafting ethical guidelines to ensure transparency and fairness in algorithmic decision‑making.
Way forward
- Companies should invest in continuous learning for their workforce and create clear career pathways from obsolete roles into new specialisations.
- India must develop its own intellectual property in AI algorithms and hardware to reduce dependence on foreign technologies.
- Inclusive policies should ensure that AI benefits all citizens, especially in sectors like agriculture, education and healthcare.