• Sanjay Gaba

The rapid advancement of Artificial Intelligence (AI) in the job market has brought forward many concerns and challenges that cannot be ignored. Although there are benefits from AI, this also cannot be denied. Its dark side also highlights various concerns and problems for businesses and individuals alike. As we delve into the deeper implications of AI in the job market, it is important to explain its challenges and understand the impacts of AI.

It is believed that the rise of artificial intelligence may affect about 40 percent of jobs worldwide. High-income economies face greater risks due to AI than emerging markets and low-income countries. Nowadays, AI is becoming prevalent in most of the industries. Like robots (AI) are working in making cars in Maruti industry. Apart from this, in many places even the work of serving food in restaurants is being done through robots. Besides, AI is also being used for robotic surgeries in hospitals. Not only this, in today's era, in a country like India which is still dependent on agriculture, AI has started taking over this too. The use of machinery in the agricultural sector is also increasing here and agricultural workers are facing unemployment.

Job displacement and automation

The most prevalent concern regarding AI is the possibility of widespread job displacement and automation. AI technologies are able to perform routine and repetitive tasks more efficiently than humans, leading to the automation of jobs in various industries. Positions that involve data entry, customer service, and basic analysis are particularly vulnerable. For example, chat bots and virtual assistants are handling customer inquiries and assistance, reducing the need for human involvement. This displacement creates significant challenges for affected individuals, leading to unemployment and income insecurity.

Psychological impact on workers

The introduction of AI into the workplace could have a profound psychological impact on workers. Fear of job loss, uncertainty about the future and less human contact can lead to increased stress, anxiety and job insecurity. Furthermore, the devaluation of certain job roles and the emphasis on AI automation may erode workers' sense of purpose and job satisfaction. The psychological well-being of workers affected by AI implementation should be a priority for businesses and policy makers. Nearly 60 percent of jobs in high-income countries could be affected by the growing adoption of AI, and nearly half of these could benefit from the use of AI to boost productivity. On the other hand, 40 percent of jobs in emerging markets may be affected due to AI. It is likely to impact 26 percent of jobs even in low-employment countries like India.

Statistics have shown that indigenous markets and low-income areas may suffer less from AI in the short term. India also does not have the skilled labour infrastructure to harness the immediate benefits of AI, increasing the risk that technology inequality could widen.

Income and wealth inequality will increase due to AI

The IMF also said that AI can also affect inequality related to income and wealth in different countries of the world. It may also lead to polarization of people from different income groups. The IMF said in its report that workers who are able to harness the benefits of AI can increase their productivity and wages, while those who cannot do so are at risk of falling further behind.

The IMF also assessed the potential impact of AI on the global labour market and noted that in most cases, AI technology risks increasing social and economic inequality globally.

(The author is National Vice Chairman of KKC)