In a candid assessment of the evolving job market, Secretary of the Ministry of Electronics and Information Technology (MeitY), S Krishnan, said on Thursday that it would be naive to assume that new technologies, such as artificial intelligence (AI), will not result in job losses. Speaking at CII’s Global Economic Policy Forum, Krishnan highlighted the growing impact of AI and other emerging technologies on traditional sectors, particularly in the business process outsourcing (BPO) industry.
Krishnan responded to concerns regarding the potential impact of AI on employment, acknowledging that while there will be a sense of fear among workers, the focus must shift toward upskilling to help employees adapt to the changing landscape. “We will be naive if we believe that there will be no job losses as a result of new technology. The comparison to the Industrial Revolution is also very apt in that regard. When you had greater mechanization, naturally jobs were lost, and there were many people who were extremely fearful of job losses,” he said.
Impact on traditional sectors
Krishnan pointed out that technology is already reshaping sectors like BPO, where many traditional jobs are being replaced by AI-driven automation. Repetitive tasks that were previously handled by humans can now be performed more efficiently by machines. “There are many repetitive tasks and traditional jobs that can possibly be done significantly faster and effectively by artificial intelligence tools,” Krishnan explained.
This shift, however, does not mean an end to job opportunities, according to Krishnan. Instead, it signals the need for a reorientation of skills. “What happens then is that it becomes incumbent on the government and the industry to upskill a lot of these people so that they can occupy higher-level jobs, which will also be an outcome of rising incomes and rising aspirations,” he added.
The need for upskilling
Krishnan stressed that the key to addressing potential job losses lies in investing in skill development. As AI and other technologies continue to evolve, the workforce must be equipped with the skills necessary to perform higher-value tasks, particularly in areas where human intervention is indispensable. “We have to then look for where meaningful jobs will arise, where more personalized services are required. Those are the kinds of jobs where human intervention becomes much more important,” he said.
Upskilling is crucial for ensuring that workers can move up the value chain, particularly in sectors such as engineering, research, and software design, which are experiencing a growing demand for advanced skills. “We see it today even in the software sector. Many traditional BPO jobs are drying up, and people are moving up the value chain in terms of engineering design, research, and jobs of that nature, which pay better but also require better skills,” Krishnan remarked.
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Global perspective and job market trends
Krishnan’s comments align with findings from the World Economic Forum’s Future of Jobs Report released in May, which estimates that the Indian job market will experience a 22% churn over the next five years. Globally, this figure is slightly higher at 23%, with 69 million new jobs expected to be created, but 83 million likely to be eliminated by 2027 due to technological advancements.
Emerging roles in fields such as AI, machine learning, and data science are expected to be key drivers of job creation. Krishnan noted that while some sectors may witness job losses, others, such as entertainment, personal care, and training, are likely to see significant growth. “There will probably be jobs in the entertainment sector, significant jobs in personal care, and a variety of other areas where personal training is required—those kinds of occupations that were not in the limelight before,” he observed.
Krishnan’s remarks underscore the dual impact of technological advancement: while new technologies like AI may lead to job losses in traditional sectors, they also present opportunities for higher-skilled employment. The key challenge for both government and industry will be to prepare the workforce for these changes through targeted upskilling initiatives. As the global job market continues to evolve, it is crucial to identify where new job opportunities will emerge and to ensure that workers are equipped with the necessary skills to thrive in an increasingly technology-driven world.
