Labor in the Artificial Intelligence era: crisis or catalyst?

Artificial intelligence (AI)'s rapid advancement presents unprecedented opportunities and significant challenges for labor markets worldwide.

- PAWAN LOHANI

Hence for policymakers, it becomes important to pay attention to the evolving technological landscape and its potential impact on the labor market. Various barriers to large-scale AI adoption persist in the present era. It includes concerns over reliability, resource inefficiencies, and infrastructure deficits. India has the largest demographic dividend in the world. This advantage along with a diverse economic landscape positions it uniquely to benefit from AI.

Rise of 'Intelligent Machines': AI Disrupting The Labor Market

There have been increasing fears about Artificial Intelligence (AI) disrupting labor markets. The rapid development in Artificial Intelligence due to complexities in models and its capabilities to work smartly has soared this fear. The evolving trend showcases that the 'intelligent machines' will be capable of performing tasks that are predominantly handled by humans today. Even, the founder of the AI research and deployment company OpenAI recently stated in a blog post how they are expecting to have office-ready 'AI workers' by the end of 2025. Following are the challenges posed by current developments of AI in the labor market.

Future Decision Makers

The current trends showcase that AI can begin to outperform humans in critical decision-making processes in areas like healthcare, criminal justice, education, business, and financial services among others.

Lack of Regulatory Framework

The speed of research and development is outpacing the regulatory and ethical frameworks needed to manage its risks.

Impact on Future Market