The AI Challenge

AI generated skill-biased technological change is going to adversely impact the demand for routine, repetitive tasks commonly concentrated among low- and middle-earning unskilled workers having limited judgment and low cognitive skills. The displacement of workers is particularly harmful to less-educated and vulnerable groups who will face more difficulties in finding alternative jobs and are more likely to be exposed to low-stability, low-wage, and high-turnover occupations

- Joydeep Biswas The writer is Principal Secretary, Faculty Council for Post Graduate Studies in Science, University of North Bengal

The Future of Jobs Report 2025 manifests the transformational effects of the emerging artificial intelligence (AI) and machine learning technologies towards reshaping economies and societies over the coming decade. Risks of job displacement, societal polarization, and economic downturn, particularly for emerging and developing economies, are looming large.

An estimate from the International Labour Organisation (ILO) points out that globally nearly 75 million jobs are at risk of automation on account of AI. Another report, from Goldman Sachs, says nearly 300 million full-time jobs will remain exposed to AI-driven automation. It is anticipated that by 2030, AI and other information processing technologies will transform 86 percent of businesses, sparking the creation of 170 million new roles worldwide while making 92 million existing jobs redundant. The overwhelming anxiety among workers over displacement from their present jobs due to widespread adoption of AI can hardly be ignored.

The AI-based fourth industrial revolution projects highly specialized efficiency-driven cognitive-intensive roles of machines to simulate human learning and intelligence. Advancements in technologies, particularly AI and information processing, and automation are expected to have a divergent effect on jobs, fueling demand for technology-related skills. It is expected that workers' existing skill sets will either be transformed or become outdated over the 2025-2030 period. The superior efficiency of AI-enabled robots in performing tasks can lead to job displacement, as they can complete tasks rapidly, precisely, and cost-effectively.