The rise of AI and its Implications on Employment
AI technologies have power to drive major social and economic changes,
especially as digital transformation continues to shape the world. They can
revolutionize businesses, industries, and job markets, offering new
opportunities and efficiencies. While challenges remain, generative AI can
enhance customer experiences, streamline operations, provide valuable insights,
and help businesses stay competitive. AI becomes more integrated into everyday
work, employers must have right knowledge and tools to make smart decisions that
foster both business growth and job opportunities.
Purpose of the report
This report brings together existing research on how AI is shaping work and
employment, offering employers valuable insights to help them navigate these
changes. The impact of AI on job markets is complex and constantly evolving, but
a wealth of research can help guide decision-making and shed light on the key
trends shaping this transformation.
Scope of AI Integration in the Workforce
In the introduction, we explore the basics of AI and the rise of generative AI
in recent years. It addresses important questions about how AI might affect
employment on global scale. We will also get to look at how AI is currently
being used in workforce management, highlighting both its potential benefits and
risks.
AI has also made some growth in specialised fields like AI and machine
learning, AI assisted diagnostics and Algorithm trading and fraud. It examines
AI-related policies, including international and national initiatives. Finally,
the report wraps up with recommendations for employers and governments on AI
development and advocacy.
Artificial Intelligence Vs. Generative artificial intelligence
Artificial Intelligence (AI) refers to computer systems designed to perform
tasks that typically require human intelligence. These tasks include learning
from data, recognizing patterns, making decisions, understanding language, and
solving problems. AI systems can be rule-based or use machine learning to
improve their performance over time without explicit programming. AI is widely
used in areas like automation, healthcare, finance, customer service, and more.
Artificial intelligence is "a system's ability to interpret external data
correctly, to learn from such data, and to use those learnings to achieve
specific goals and tasks through flexible adaptation"[1]. The modern conception
of AI refers to "agents" or systems that can perform actions based on their
perception of environment.[2]
Generative AI is a subset of AI that focuses on creating new content, such as
text, images, music, or even videos. Unlike traditional AI, which primarily
analyses and processes data, generative AI models can generate original content
based on the patterns they have learned. This technology is powered by advanced
machine learning techniques, especially deep learning and neural networks.
Generative AI is transforming industries by assisting in content creation,
automating tasks, and enhancing creativity, but it also raises ethical and
regulatory challenges regarding misinformation, intellectual property, and bias.
Many AI experts believe that fake content will soon be impossible to detect.
According to an article from The Economist, fake images, videos, and ads are
becoming major challenge.
Even latest detection software struggles to identify
them accurately. While some assume that AI-generated content leaves behind
tell-tale signs, this isn't always true. It's becoming increasingly difficult
for people to distinguish between real and fake visuals. Even most advanced
detection programs still misidentify AI-generated images 13% of the time.
AI Implication On Job Market
Elon Musk's Department of Government Efficiency (DOGE) is actively working to
reduce the number of federal employees. At the start of 2025 the department
began offering buyouts and eliminating thousands of government positions and to
compensate these reductions DOGE appears to be turning into artificial
intelligence. [3]
Major Wall Street firms which includes Goldman Sachs and Morgan Stanley are
reportedly exploring the use of AI to automate entry-level tasks. This includes
responsibilities like assembling presentations and inputting data works which
are traditionally assigned to junior employees as part of their early career
development. By automating these processes banks could potentially save millions
of dollars while streamlining their operations.
IBM plans to replace approximately 30% of its back-office workforce with AI over
the next five years which amounts to around 7,800 positions. The company has
already reduced hiring for administrative roles which including those in human
resources. Beyond clerical tasks IBM CEO Arvind Krishna has expressed interest
in automating more complex functions such as analysing workforce composition and
productivity within the next decade.
JP Morgan now uses AI to review commercial loan agreements which was previously
done by lawyers and lawyers used to take 3 60 000 hours annually but now it is
completed in seconds. In May as advertising revenue declined Microsoft replaced
dozens of journalists at MSN and Microsoft news with AI that is now capable of
scanning and processing content. Similarly, iHeartMedia has also laid off
numerous DJs just to leverage its investments in AI and technology.
According to Rob LoCascio who is the CEO of LivePerson which is a company
specialising in conversational AI stated that the business that once required a
1000 person call centre could now operate with just 100 employees and chatbots.
He shares that while a skilled call centre representative can handle six
customer queries per hour a bot can manage 10,000 in the same time frame. In
David's Bridal which is a retailer with about 300 stores across North America
and the UK implemented a chatbot named Zoey through LivePerson. By integrating
AI David's Bridal has reduced call centre costs by 35%. [4]
In April 2023 Chinese marketing agency BlueFocus terminated the contracts of its
human content creators and designers and relied on the generative AI. In 2024
U.S. software company Salesforce laid off 700 employees which represents about
1% of its global workforce. The company did not explicitly link these job losses
to AI but its shrinking hiring budget and increased investments in artificial
intelligence suggest that automation is replacing many of these roles.
The Indian workforce is increasingly experiencing the impact of artificial
intelligence on employment. Recently digital payments company Paytm terminated
approximately 1000 employees across its various departments. The company
attributed these layoffs to AI powered automation as a part of broader effort to
reduce employee cost by 10-15%. On a global scale technology giant Google is
reportedly restructuring its sales division of around 30,000 employees with its
AI driven campaign management system reducing the need for human involvement.
[5]
Vijay Sivaram who is the CEO of Quess IT Staffing pointed out that while AI has
been evolving for some time its effects on employment are becoming more
pronounced due to rapid advances in generative AI technologies. He noted that
certain skill sets particularly among older engineers who have not updated their
expertise are at higher risk of being replaced. IT hiring market is also facing
a slowdown majorly due to excessive recruitment during the COVID pandemic period
for which the companies are now looking to streamline their workforce through AI
driven automation.
In July Bangalore based e-commerce company Dukaan took an aggressive approach to
AI adoption. CEO Summit shah replaced 90% of company's customer support staff
with an internally developed chatbot as it reduced customer support costs by 85%
and also shortened the wait times for customers.
In January 2024 language-learning platform Duolingo cut 10% of its contractor
workforce and shifted toward AI-generated content translation. Even though these
individuals were not classified as permanent employees the company acknowledged
that AI played a role in its decision to terminate their contracts.
AI and Employment: Opportunities and Challenges
Recently research analysis regards introduction of AI has led to labour
substitution i.e. doomsayer's perspective or there is efficiency gain and
generation of new type of employment from AI Implementation i.e. optimist's
perspective. "If we consider both approaches, then we arrive to more balanced
approach which states that AI has at least three effects on employment: job
displacement, augmentation and creation. Regarding the latter, 50 per cent of
employers worldwide expect AI to promote job growth in the next five years."[6]
"The World Economic Forum predicts that by 2025, 97 million new roles may emerge
adapted to the new division of labour between humans, machines, and algorithms."
[7]These roles include AI ethicists, data scientists, machine learning engineers
and AI- human interaction designers. By 2027, some of fastest-growing jobs for
employers will include AI and machine learning specialists, sustainability
analysts, and business intelligence analysts. In addition to boosting demand for
existing roles, AI is also expected to create entirely new job opportunities.
Emerging positions such as prompt engineers, AI model developers, data trainers,
and specialists in AI governance and ethics are just few examples of careers
that will be shaped by this technological shift.
Jobs that involve face-to-face interaction and social skills will become even
more important as AI advances since these tasks are harder to automate.
Meanwhile, certain professions like healthcare, construction, and hospitality
are unlikely to be significantly affected by AI when it comes to their core
skills.
AI will definitely impact job demand, but rather than replacing jobs entirely,
it will mostly enhance them. According to International Labour Organization (ILO),
AI could improve productivity in about 13% of jobs worldwide, but only 2.3% of
jobs can be fully automated with current technology. Initially, experts thought
AI would mainly take over routine tasks, increasing demand for creative roles
and data analysts. However, with rise of generative AI capable of both
creativity and problem-solving Deloitte (2023) suggests that AI can now automate
and improve a variety of administrative and analytical tasks across different
industries.
According to LoCascio Businesses still require "bot builders" to train the AI
and call-centre agents who transition into these roles can see their pay rise by
about 15%. Despite this optimistic view the reality is that far fewer bot
builders are needed compared to traditional call centre agents. Workers without
college degrees or those lacking access to retraining programs face limited
mobility which leads them to job displacement.[8]
"In January 2025, the IT sector experienced a significant rise in unemployment,
reaching 5.7%up from 3.9% in December 2024."[9] This increase is attributed to
the growing automation of routine IT tasks and substantial investments in Ai
infrastructure by major tech companies. If used wisely, AI can drive economic
and social progress. Instead of fearing AI we should see it as a tool that can
help tackle big challenges, like improving access to healthcare, education, job
training, and social security. The idea that we must either fully embrace AI or
completely reject it is misleading it's not an all-or-nothing choice.
AI has always been a general-purpose technology so its impact on job quality and
working conditions can be both positive and negative. Some research highlights
concern about "algorithmic management" where AI is used to monitor and manage
workers that leads to the raising issues around data privacy, surveillance, and
worker autonomy. AI is actually now transforming workplace training. Virtual
AI-powered trainers can personalize learning experiences that helps to adapt to
various individual needs and helping employees develop new skills effectively.
Eventually when AI has been used responsibly It has create better working
environments and improve overall job conditions.
There has been seen progress in business as they are moving towards the era of
digital simultaneously the competition is growing with more players entering the
market and new business models emerging. A global PwC survey (2024) found that
68% of CEOs believe generative AI will make their industries even more
competitive. In this landscape, AI is a crucial tool, especially for small and
medium-sized enterprises (SMEs) that need smart strategies to stay ahead.
AI helps businesses identify new opportunities, take advantage of them, and
transform their operations. Companies are expected to use AI in various areas,
including process optimization, customer analysis, product and service
innovation, and demand forecasting. AI-powered tools provide businesses with
competitive edge by improving efficiency and decision-making.
When it comes to logistics and supply chain challenges, big data analytics can
help reduce risks and improve knowledge sharing. Within organizations, AI
enables better cross-team collaboration and data integration, making operations
more efficient. In marketing and sales, AI is already being used to automate
e-commerce, screen potential customers, and enhance customer service through
chatbots. Overall, AI is improving products, services, customer experiences, and
workplace efficiency, making it powerful tool for businesses of all sizes.
There are areas where using AI fully will be beneficial in the workplace. Even
if AI will likely cause some jobs to disappear while creating new ones. The key
is to make sure people can transition smoothly into new roles. This means having
flexible job markets and strong education systems that help workers gain the
skills needed for future jobs. It will be important to focus on the ability to
quickly learn new things.
AI is used to monitor work and boost productivity, but there are concerns about
it being misused, like causing unfair treatment or violating workers' rights. We
need rules to make sure AI is used fairly that follows work regulations and is
transparent which also protects the creators' intellectual property.
As AI grows
it's becoming more important to protect user's data and keep workplace
information safe from cyberattacks. We need to make sure that users' personal
data isn't misused by AI systems. AI can sometimes create fake information such
as false certificates or wrong details about users. This is something that needs
careful regulation in order to avoid harm in the workplace.
Ethical Considerations In AI
Prime Minister Narendra Modi at the RAISE 2020 global AI summit expressed his
vision of making India a global leader in artificial intelligence. He described
AI as testament to human intelligence, emphasizing how our ability to think has
led to creation of tools and technologies i.e. tools that can now also think and
learn on their own. His vision aligns with his "Digital India" initiative, which
promotes technological advancements across the country.
However, in a more recent address during the "Diwali Milan" event, Modi voiced
concerns over the misuse of AI, particularly the rise of Deepfake Technology.
Deepfakes involve manipulating photos and videos to make it appear as though
someone said or did something they never actually did. This technology has
become increasingly common, especially on social media, raising ethical and
security concerns.
Beyond misinformation, AI-driven advancements, while creating
new job opportunities are also expected to disrupt employment. While experts
argue that AI will generate more jobs than it eliminates, challenge lies in reskilling workers for these new roles. Not everyone will have access to the
necessary training, which could widen employment gaps and create hurdles for
many in adapting to the changing job market.
"In February 2024, UNESCO hosted the 2nd Global Forum on the Ethics of
Artificial Intelligence, focusing on effective and ethical AI governance"[10].
The forum facilitated discussions among countries at various stages of
technological and policy development emphasising the importance of ethical
standards in AI deployment. Now it's "3rd UNESCO Global forum on Ethics of
Artificial Intelligence is also going to held from 24 to 27 June 2025 which is
going to be held in Bangkok, Thailand." [11]The forum is going to highlights
achievements in AI ethics since UNESCO's 2021 Recommendation on the same.
The
forum will bring together global leaders, AI experts, industry pioneers and
policymakers to address the challenges and opportunities in AI development. In
September 2024, SAP updated its AI ethics policy in alignment with UNESCO's
recommendations highlighting the growing trend of corporations adopting ethical
frameworks to guide AI development and implementation.
Kamal Karanth who is the co-founder of staffing company Xpheno emphasised that
large scale AI induced layoffs are tangible risk in the near future. He stated
that it is not the first time we are seeing technological advancement and
previous advancement has facilitated the creation of more jobs than were
lost. There are growing concerns about ethics as AI becomes a bigger part of the
workplace especially in hiring and employment decisions. AI is now commonly used
to scan resumes, screen applicants, assess skills, and even make decisions about
things like performance reviews, promotions, and pay.
It has been observed that AI systems can inherit and even magnify the biases of
people who create them especially if they're trained on biased data. Suppose a
resume screening tool used by Amazon was found to favour male candidates over
females. if this is not addressed properly it will negatively impact job
opportunities, pay, and career growth. There is a need of updating the current
labour laws to avert discrimination in AI systems and new rules can set an
oversight mechanism in order to tackle these issues.
Regulations that promote
transparency in how AI works would actually help to identify and fix biases.
Laws should require regular audits to check if AI is producing bigoted results
predominantly for groups protected by discrimination laws. AI based hiring tools
must comply with the Sexual Harassment of Women at Workplace (Prevention,
Prohibition, and Redressal) Act 2013.
Generally, when bias is found companies need to be able to explain their
decisions and there should be a way for employees to appeal if they feel they've
been treated unfairly. One thing that can help reduce biases caused by lack of
different perspectives is encouraging diverse teams to build these systems. AI
training data and algorithms should be designed to avoid reinforcing social
biases. With right laws and company practices in place we can ensure that AI
helps to make more ethical and unbiased decisions. But if nothing is done
there's a risk that hidden biases could continue to affect important career
choices.
As AI tools process personal data there's risk of losing control over that
information that can potentially make it publicly accessible without consent
which could have significant impact on job opportunities and employment market.
While AI is expected to create more jobs than it eliminates it needs many
workers to learn new skills in order to fill these roles. But seeing the current
scenario not everyone has opportunity or ability to adapt to changes brought by
AI.
Under the Digital Personal Data Protection Act (DPDP), Clause 3(c)(ii) states
that the law doesn't apply to data that has been made public or shared publicly
by the user. This allows AI companies to access and use data that's publicly
available without needing consent or facing legal consequences. Currently,
there's no law specifically preventing AI from infringing on privacy. For
instance, services like OpenAI's ChatGPT can access publicly available data from
internet without legal issues.
The purpose of new law is to protect people's
personal data while still allowing necessary processing for legal or legitimate
purposes. In case of Anivar Aravind v. Ministry of Home Affairs, it was argued
that such technology violates citizens' personal privacy rights but the court
ruled that these uses do not violate privacy laws and comply with the Personal
Data Protection Act.
AI will not only affect job opportunities but also the rights of workers. As
automation increases especially in sectors like manufacturing, transportation
and services there will be less demand for human workers. This shift could make
it harder for workers to defend their rights such as fair wages, reasonable
working hours, and safe working conditions.
With AI becoming more common in the
workplace workers may face challenges in organizing unions or negotiating better
terms through collective bargaining. When jobs are at risk due to automation
workers may struggle to advocate for better working conditions.
AI systems can also be used to monitor workers' performance which can lead to
increased stress and pressure. These systems might assign tasks that are too
difficult or beyond workers' skills limiting their ability to make decisions and
affecting their autonomy in workplace. This could create tense and hostile
working environment where workers are more vulnerable to exploitation especially
on AI-driven platforms with limited protections.
Legal Framework And Policies On AI
It is crucial to examine AI implications under Indian labour laws as AI has
become increasingly integrated into workplaces. The Industrial Disputes Act 1947
also regulates layoffs and retrenchments that may arise due to AI-driven job
displacement. This code ensures that the employer provides justifiable reasons
and compensation while terminating workers and must ensure that employees are
not unfairly dismissed due to technological advancement.
With the rise of AI there is a risk that employers may attempt to classify AI
augmented work differently that may lead to wage suppression. The Code on Wages
2019 also ensures that minimum wage requirements apply in AI dominated
workplaces and ensures fair compensation regardless of AI intervention. AI
driven workplace needs to be monitored in order to ensure that algorithmic
management does not violate employee rights to safety and dignified working
conditions.
Contractualisation of employment is another challenge that needs to be tackled
down. Since there is a shift in the market to AI driven jobs many positions are
shifting from permanent roles to contract based or gig economy jobs which means
there is fewer protections under traditional labour laws. The Code on Social
Security 2020 was introduced to extend some benefits to gig workers such as
those employed by platforms like Swiggy, Ola and Zomato where Ai based
algorithms determine work allocation.
However unlike permanent employees these
workers lack protections such as fixed wages, paid leave, and grievance redressal mechanisms. The rise of AI-managed workforces calls for stronger legal
safeguards to prevent precarious employment conditions. In India, there are no
specific laws focused solely on AI, but there are existing legal provisions that
cover aspects of AI-related issues.
The Information Technology Act 2000 governs data privacy as AI systems collect
and process data of worker and employee's digital privacy must be safeguarded
against AI-enabled biases and potential misuse by employers. Section 43A and 72A
of the Information Technology Act, Section 43A holds organizations accountable
for mishandling sensitive personal data. If company fails to implement proper
security practices and this leads to financial harm or data breaches, they can
be held liable for damage.
Section 72A addresses breaches of confidentiality,
particularly when someone gains access to personal data without consent.
Violators could face fines, imprisonment, or both. If someone uses AI to commit
crime, they would be punished under this law.
Personal Protection Bill, this bill which regulates how public and private
entities manage personal data of Indian citizens, both within India and abroad
was renamed Digital Personal Protection Bill. It requires companies to obtain
consent before processing personal data. However as mentioned earlier data that
is publicly available or shared by the user is excluded from law.
K.S. Puttaswamy Vs Union of India, in this landmark case the Supreme Court
highlighted the importance of having comprehensive laws to protect data privacy
especially with the rise of AI. The court recognized privacy as a fundamental
right that emphasise the need to safeguard personal data from AI systems.
Employers implementing AI-based tracking tools, biometric attendance systems,
and productivity monitoring software must ensure that they do not violate
employees' privacy rights.
The Digital Personal Data Protection Act, 2023 (DPDP Act) introduces legal
obligations for organizations collecting personal data. Employers using AI for
monitoring must now obtain explicit consent from employees before processing
their personal data. The Act restricts how companies can store and utilize
employee data that reduce the risk of misuse by AI-driven HR systems. These
legal provisions are much needed to prevent overreach by employers and ensures
AI does not erode workers' rights to privacy.
Indian Copyright Act, this law protects intellectual property of creators,
including literary, artistic, musical, and dramatic works. As AI-generated
content becomes more common, debates around copyright ownership have arisen. For
example, in 2011 case of Gramophone Company of India Ltd. v. Super Cassettes
Industries Ltd., court ruled that AI-generated music isn't protected by
copyright because it wasn't created by a human.
This case clarified that
AI-generated media is not covered by India's copyright laws. While these laws
address use of AI, they don't regulate technology itself or provide legal
obligations for AI systems. They mostly focus on actions of individuals or
organizations using AI, rather than regulating AI directly.
Policies that have been Developed at the International Level
In October 2024, the Biden administration issues a national security memorandum
focusing on AI's applications and competitions with other nations.[12] The
policy aims to align AI use with democratic values secure the AI chip supply
chain and prioritize AI intelligence against foreign competitors.
The European
Union's AI Act has set a precedent for global AI regulation, emphasising a
nuanced approach to managing the technology's risks while fostering its
development. This evolution has shown that legislative frameworks can balance
oversight with creative freedom.
Over past decade, the global response to AI governance has largely focused on
developing frameworks and principles that governments and companies can adapt to
guide their own AI strategies. For example, the United Nations has established a
High-Level Advisory Body to provide recommendations on how AI should be governed
internationally by mid-2024.[13]
"ILO Centenary Declaration for the Future of Work (2019)" This encourages a
human-centered approach to work, focusing on enhancing people's skills,
strengthening labour institutions, and promoting inclusive and sustainable
economic growth and decent work.
"OECD AI Principles (2019)" These principles support human-centered values like
respecting the rule of law, human rights, and democracy throughout entire AI
process. The goal is to foster inclusive growth and ensure AI development is
transparent.
"UNESCO Recommendation on AI (2021)" This recommendation emphasizes the need for
human oversight of AI systems and advocates for policymakers to collaborate with
various stakeholders, such as private sector, civil society, and unions, to
ensure a fair transition.
"G7 Hiroshima AI International Guiding Principles and Code of Conduct (2023)"
These guidelines focus on the safe and responsible development of AI, covering
areas such as risk management, transparency, governance, security, research
priorities, and the adoption of standards.
"European union (EU) AI Act (2024)" classifies AI-driven hiring tools as
High-risk that requires companies to maintain transparency and human oversight
in AI based employment decisions. The Indian legal framework currently lacks
such specific AI governance in employment so it is necessary to introduce
AI-specific employment regulations.
"the United States has implemented regulations like New York's AI Hiring Law
(2023)" mandates the employers audit AI tools for bias. In July 2023 New York
City implemented local law 144 to address potential discrimination arising from
the use of Automated Employment Decision Tools (AEDTs) in hiring and promotion
processes.
This legislation imposes a mandate provision of conducting annual
independent bias audits of any AI driven tools used in employment decisions.
Critics point out that the law allows employer significant discretion in
determining whether their AI systems fall within its scope, leading to
inconsistent compliance.
A study conducted in 2024 revealed that out of 391
employers surveyed only 18 had posted audit reports and 13 had provided
transparency notices which suggests that the current framework may not
effectively ensure accountability. Additional bills aimed at closing existing
loopholes and enhancing the law's enforcement mechanisms have been proposed by
the New York state legislators.
AI tools can mass produce applications while assisting job seekers which can be
a problem to employers and HR systems. Courts have begun addressing AI's role in
hiring, privacy, workplace monitoring and legal decision-making. In the case of
Christian Mallon (UK 2024), he was an unemployed individual in the UK who used
AI to generate over 4600 job applications and later on filed 60 legal claims
alleging discrimination by employers. He owned one case and managed to secure
£35,000 in settlements. The court deemed his actions "vexatious".
AI systems rely heavily on large database for decision making which bring a
requirement for a stronger data privacy laws in employment, employer
accountability, and transparency in AI powered recruitment. In Google Spain SL
Vs Agencia Española de Protección de Datos (Court of Justice of the European
Union, 2014), right to be forgotten under General Data Protection regulation
(GDPR) was established where it allowed individuals to request the removal of
personal data from search engine results mainly the information which is
outdated or no longer relevant.
Recommendations For Employers And Government
According to Team Lease Digital a human resources services firm over 16 million
workers in India will require reskilling and upskilling by 2027 due to the
increasing influence of AI. Simultaneously some experts highlight that new
opportunities will emerge in sectors such as manufacturing and retail but there
lies an immediate concern about job losses.
LinkedIn's 2024 Jobs on the Rise Report highlights several AI-related roles
among the fastest-growing, including AI consultant. Machine learning engineer
and AI research Scientist, indicating a surge in demand for professionals
skilled in AI. The International Monetary Fund estimates that AI will affect
almost 40% of jobs worldwide, with some roles being replaced and others
complemented by AI technologies.
This underscores the need for balanced policies
to harness AI's potential while mitigating its risks. AI is clearly changing the
job market, offering both new opportunities and challenges. While it can create
millions of new jobs and drive economic growth, it also risks displacing many
existing jobs.
By focusing on reskilling and upskilling workers, creating ethical policies, and
encouraging innovation, we can manage the changes brought by AI and ensure a
future where everyone benefits. The impact of AI on jobs is significant, but
with the right approach, it can lead to a more flexible and inclusive job
market.
Gradually AI is becoming more common in workforce and is bringing up important
ethical and policy challenges. All these Issues such as data privacy, bias in
algorithms, and unequal access to technology need to be tackled to make sure
everyone benefits from AI. Innovations should not come to an end it's just that
Policymakers should create rules that protect workers' rights while still making
innovations.
There should be policies in place to help workers who lose their
jobs due to AI such as unemployment benefits, job placement services, and social
safety nets. All these will ensure that these workers can have a transition
smoothly for maintaining social stability and economic growth.
Companies should encourage culture where AI adoption is seen as positive
opportunity. This includes experimenting with AI, learning from successes and
mistakes and staying updated on AI trends to adapt strategies when necessary
which would foster a culture of innovation. Companies should develop AI
Strategies just like they adapted to past technological changes to guide their
efforts. This is especially important for large enterprises where majority
already have AI strategies in place. Smaller businesses should focus on building
resources, managing data, and ensuring responsible AI use.
It's crucial for businesses to prioritize training workers in AI-related
knowledge and skills. In 2023 many workers still lacked guidance on using AI in
their roles so investing in skill development should be top priority. Companies
should carefully assess the ethical implications of AI tools especially
regarding data privacy and governance. Collaboration with governments and
workers is essential to address these ethical concerns and ensure AI is
introduced responsibly.
Governments should prioritize regular risk assessments and develop contingency
plans especially for cybersecurity. Investing in cybersecurity infrastructure
particularly for small businesses can help prevent data breaches. For example,
Trinidad and Tobago introduced a tax incentive for businesses investing in
cybersecurity.
Governments need to monitor and review how workers' data, company
data (like HR and financial information), and IT equipment are handled to
protect against impersonation and data theft. It should offer digital literacy
programs at all levels which will help citizens prepare for working in an
AI-driven economy. Unemployment relief or retraining programs should be offered
to assist workers who are affected by AI-driven job changes.
End Notes:
- Kaplan and Haenlein, 2019
- Russell and Norvig, 2020
- Isobel O'Sullivan, The Companies That Have Already Replaced Workers with AI in 2024 & 2025, Tech.co, (February 2025), https://tech.co/news/companies-replace-workers-with-ai
- Alana Semuels, Millions of Americans Have Lost Jobs in The Pandemic- And Robots and Ai Are Replacing Them Faster Than Ever, TIME, (August 2020), https://time.com/5876604/machines-jobs-coronavirus/
- Himanshi Lohchab, India job scene sees early signs of disruption from AI, The Economics Times, (Jan 2024), https://m.economictimes.com/tech/technology/india-job-scene-sees-early-signs-of-disruption-from-ai/amp_articleshow/106422589.cms?utm_source=chatgpt.com
- Gilbert, 2023
- Steve Torso, The Profound Impact of AI on the Job Market in 2024: Disruption, Adaptation, and opportunity, WHOLESALE INVESTOR (July 2024)
- Alana Semuels, Millions of Americans Have Lost Jobs in The Pandemic- And Robots and Ai Are Replacing Them Faster Than Ever, TIME, (August 2020), https://time.com/5876604/machines-jobs-coronavirus/
- Belle Lin, IT Unemployment Rises to 5.7% as AI Hits Tech Jobs, WALL ST. J. (Jan. 2025), https://www.wsj.com/articles/it-unemployment-rises-to-5-7-as-ai-hits-tech-jobs-7726bb1b
- https://www.unesco.org/en/articles/global-forum-ethics-artificial-intelligence-2024
- https://www.unesco.org/en/forum-ethics-ai
- Mohar Chatterjee and Joseph Gedeon, New Biden policy takes a big swing at AI- and sets political traps, POLITICO (October 2024), https://www.politico.com/news/2024/10/24/biden-ai-policy-national-security-00185407
- https://www.un.org/techenvoy/ai-advisory-body. The UN General Assembly, indicating the direction where the Advisory Body might go in terms of AI governance, adopted a resolution in March 2023 that called on all Member States and stakeholders
Written By: Samparna Mishra
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