Heightened concerns around artificial intelligence (AI) and its impact on jobs have taken center stage in India’s tech industry, with particular emphasis on the over USD 250 billion sector’s contribution to the nation’s GDP. Nasscom’s chairman, Rajesh Nambiar, recently underscored the vulnerabilities of workers in the business process outsourcing (BPO) sector, foreseeing a significant disruption due to the advent of generative AI technologies.
Understanding the Impact
During a seminar in Pune, Nambiar, who also serves as the chairman and managing director of Cogniozant’s India unit, clarified that while the software services industry remains relatively secure, those engaged in process-related industries, especially BPO, face imminent risks of replacement by AI engines. This revelation comes amid the broader discussions on AI’s role in transforming traditional job roles and industries. The BPM industry, valued at USD 48.9 billion, has evolved significantly, yet it stands at a crossroads with AI’s rapid advancement.
White Collar Jobs at Risk
Nambiar elaborated on the potential of generative AI to impact white-collar jobs more severely compared to past technological upheavals, which mainly targeted lower-end tasks for automation. Professions relying heavily on cognitive tasks, such as equity analysts and statisticians, are particularly vulnerable. Despite the current hype around generative AI, Nambiar suggests its long-term implications are vastly underestimated, predicting a profound transformation in the workforce landscape over the next 5 to 10 years.
AI as a Great Equaliser
Interestingly, Nambiar views generative AI as a ‘great equaliser,’ positing that its benefits are more pronounced where human capabilities are limited. This perspective not only highlights the transformative potential of AI but also underscores the urgent need for skills development and adaptation among professionals. As India navigates this technological shift, the focus on retraining and leveraging AI for human advancement becomes paramount.
The discourse on AI’s role in reshaping industries and job markets continues to evolve, with significant implications for India’s tech sector and its workforce. As the world leans into AI’s potential, the balance between embracing innovation and safeguarding employment remains a critical challenge for policymakers, industry leaders, and workers alike.
