Like most millennials, my high school friends also have a WhatsApp group which has allowed us to stay in touch with each other. One of our classmates is Electrical Engineer (working with Transformers). As a banter he always gives hard time to folks working in IT industry about AI. His argument is AI is coming; and your jobs are under threat. I think he means well.
AI is latest thing that is dividing people. As things stand there are 2 extremes. One end is AI is going to take all the jobs away. Other end is AI is not going to have any significant impact (argument – in last decade there was a similar “hype” around Meta Verse, Crypto etc. what’s the adoption rate?). When you take a step back and relook at things, you know truth probably lies somewhere between these extremes. Based on what we know today, AI is going to have an impact on workforce in terms of what we do and how these jobs are performed.
In 1960s Life Insurance Corporation of India (LIC) introduced computers. The employee unions were opposed to “job eating” machines and ensured one of the computers in Calcutta (now Kolkata) was not allowed to function. In 2026, Computers are very much part of LIC, and it continues to employ more than 90,000 people. BTW, the computer system that LIC unions opposed was acquired by TCS and the rest is history!
AI is not the first and won’t be the last technology that is set to transform how the World operates. When supercomputers entered the scene their processing power helped various industries. Some of the biggest beneficiaries of usage of supercomputer are –
- Pharma – the drug discovery and testing process has gotten better and shorter.
- Airlines – Simulation testing for new aircraft models means fewer accidents in early phases.
- Formula 1 teams – race car testing for new technology reducing cost significantly.
It’s true that AI is going to unleash a disruption across work force. To say AI is going to take all the jobs away is a big exaggeration. Like any new technology it will replace subset of low skill jobs and open doors for high skill work. At rudimentary level, I like to compare AI adoption with introduction refrigerators in household. In 1980s and 1990s most Indians used clay pots for cold water during summers. As refrigerators came subset of clay pots did disappear, but other people continue to use clay pots for cold water. Yes, there is a reduction in business, but it has not got extinct. But what refrigerators ushered is new business opportunities. One good example is fridge magnets industry which is doing business of around $2.85 billion globally. Point is opportunities that AI is going to unfold are huge and let’s not fear it. Looking at declining population across the globe, the threat of shortage of skilled workforce is real. So, some of the productivity gains that AI is going to introduce are very much required.
If for a moment one agrees with naysayers that AI is going to take away 100% of jobs, then it’s going to have a catastrophic impact on wider society and economy. AI is not going to –
- A restaurant to have a meal
- Get married (divorce lawyers are worried).
- Need a home to stay
- Travel places
- Consult a doctor
So, all these industries will be badly affected. AI models are not going to pay income tax. So, I highly doubt Governments world over are going to allow AI to replace humans. So, expect more and stringent regulations that govern AI….
As a closing thought, lets circle back to clay potter for a moment. Yes, they have seen a reduction in water pot business. But they’re now doing other things like clay pots for plants and lamps for festivals. Both require more skills, but they help earn more money as well!