Economic Survey 2024-25 urges the Government to have an impact of AI on the workforce ‘very seriously

The 2024-2025 economic survey clarified the challenges of artificial intelligence (AI) in the labor market. The 436 pages survey was presented by the Minister of Finance, Nirmala Sitharaman, one day before it was scheduled to present this year’s union budget. In the survey, the Chief Economic Advisor V Anantha Nageswaran and his team emphasized how the perception of AI has changed dramatically in recent years.

The survey pointed out that Openai has managed to start an “arms race” in the development of AI technology among large technology companies since 2022. They argued that the “AI revolution” marked the beginning of a new era where the great could be automated work, and the great great work, and the great -the use of the scale of AI could lead to labor displacement.

He transmitted the fears of the adoption of large -scale AI to those of the challenges presented by the previous industrial and technological revolution. The survey pointed out that the Indian economy is predominantly oriented to the service, with a large part of its IT workforce that generally participates in low -added services. “These roles are particularly vulnerable to automation, since companies can replace labor with technology to reduce costs,” says the survey.

This is how the economic service highlighted the challenges that AI raises to the policy and developer formulators of AI:

Challenges for policy formulators

The survey warned that policy formulators should seriously consider the challenges raised by large -scale use and excessive AI dependence. It is suggested that policy formulators should “minimize the negative impacts of creative destruction” and carry out collective social efforts to protect Indian work.

This can be through the creation of a new social infrastructure to facilitate inclusive growth. “India, therefore, will have to accelerate the creation of solid institutions through a tripartite pact between the government, the private sector and the academy,” the survey suggested.

When it comes to social infrastructure, the Economics Survey advised the creation and promotion of “enabling institutions, insurance of institutions and administration institutions”, which will help our workforce to graduate towards medium and qualified works, where AI can be used to increase the increase in task and not replace them.

However, the survey said that building these institutions can be a process that consumes a lot of time and requires a lot of intellectual and financial resources. “Fortunately, because AI is currently in her childhood, India has the necessary time to strengthen its foundations and mobilize an institutional response at the national level,” the survey declared.

Challenges for AI developers

In addition to this, the economic survey also made recommendations for AI developers to guarantee a more inclusive future. He declared that “practicality and reliability” are two central problems that IA developers must address before the generalized adoption of technology is achieved.

The survey also requested a larger infrastructure scale, but acknowledged that the process would take time. They urged developers to focus on AI models that will be directed to efficiency gains without compromising performance. “Taking advantage of its young, dynamic and expert population, India has the potential to create a workforce that can use AI to increase its work and productivity,” the survey said.

“Policy formulators must balance innovation with social costs, since the changes promoted by AI in the labor market could have lasting effects. In the same way, the corporate sector must act in a responsible manner, managing the introduction of AI with sensitivity to the needs of India, “he concluded, highlighting the need to establish collaboration efforts between the government, the private sector and the academy.