Anxieties about effects of AI remain high in India: Economic Survey 2024-25

The survey says that practicality, reliability, infrastructure, and efficiency all need to work in tandem before true large-scale adoption happens.
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BENGALURU: With the increasing adoption of Artificial Intelligence (AI) across various sectors, employees are concerned about its impact on the job market. The Economic Survey 2024-25, released on Friday, pointed out that anxieties about AI remain high in India and stressed the need for robust institutions.

"As India's workforce in low-skill and low-value-added services remains vulnerable to AI, robust enabling institutions are essential to help transition workers to medium- and high-skilled jobs, where AI can augment their efforts rather than replace them," the Economic Survey said.

Though AI is useful in exploring and optimising certain jobs, the full scope of its practicality is still limited. The Survey states that AI models, particularly overly complex generative AI, which are too rich and have too many parameters, are unconcerned with the truth, unconcerned with the ‘correctness’ of their output, and unconcerned with the realities of the world.

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Considering AI adoption across various countries and the launch of the low-cost AI model DeepSeek R1, it is important to focus on infrastructure.

It says practicality, reliability, infrastructure, and efficiency all need to work in tandem before true large-scale adoption happens.

The Survey points out that concerns over AI displacing labour may be somewhat ameliorated by the time it takes for complementary facilities needed for AI adoption at scale.

Stressing the need to equip the workforce with future-ready skills such as AI, it says AI functions as a tool tailored to particular purposes and that it is more suited to supplement human action rather than serve as a total replacement for work performed by them.

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