Mumbai: With a significant portion of coding profiles, system maintenance, and junior-level support functions being automated, the wider adoption of artificial intelligence (AI) technology by India Inc. is expected to lead to the displacement of approximately 15,000 to 20,000 jobs within this year.
Various companies, especially in the IT, hospitality, and banking sectors, are actively engaged in reskilling their workforce, as highlighted by consulting firms and recruiters. However, there is a cautionary note that layoffs might ensue as employees strive to adapt to this cutting-edge technology.
Anandorup Ghose from Deloitte India mentioned that roles driven by processes that can be automated, along with positions requiring basic programming or communication skills, will face short-term impacts. He stressed the importance of businesses and employees aligning their skill development strategies to meet the demands of this evolving technology landscape. Ghose emphasized that enhancing the skill development agenda should be the top priority for India given the scale of the workforce and the emerging opportunities. Failure to seize this opportunity due to inadequate preparedness could lead to missed prospects, he added.
Employers have identified roles that can be executed from servers, such as application development and user support, as the most vulnerable to automation. Prasadh M. S., head of workplace research and insights at Xpheno, anticipates around 20,000 job cuts in the upcoming period due to the integration of chatbots for initial customer interactions. Despite the initial high costs of AI implementation, companies are expected to benefit in the long run as the productivity of machines is equivalent to that of five young professionals.
The hiring landscape will witness significant transformations due to these advancements. Xpheno reports a mere 2.4% increase in overall workforce development in the IT sector for FY24 compared to the previous fiscal year. This sluggish growth contrasts sharply with the post-pandemic years when businesses across sectors were actively seeking talent with modern skills or engaging IT firms to facilitate their expansion following a period of subdued business activities. Notably, there was a 20% surge in manpower between FY22 and FY21.
TeamLease, a prominent recruitment agency, has observed a shift in demands within the IT sector driven by AI-led advancements. As digitization of work processes accelerates, the demand for legal professionals in the field is expected to decline. Sunil Chemmankotil, CEO of TeamLease Digital, estimates that the IT industry may witness around 15,000 job reductions among junior profiles.
Nevertheless, as companies invest in upskilling their workforce, AI is also projected to create new employment opportunities.
Ashish Kumar Singh, Chief Human Resources Officer at Meesho, highlighted the increasing role of AI in customer support functions, particularly in contact centers. Through partnerships with third-party service providers for call center operations, elements of customer interactions such as calls and initial chats are being automated using AI. Singh emphasized that AI is currently positioned as a supportive tool, particularly in areas like analytics and initial scripting. While immediate job losses may not be imminent, Singh envisions potential long-term transformations in the job market.
