Is your job safe? 40% of Indian employees fear skill redundancy due to AI

The rapid adoption of artificial intelligence (AI) across India’s white-collar workforce is reshaping the landscape of workplace technology. According to a recent study by the Brij Disa Centre for Data Science and Artificial Intelligence (CDSA) at the Indian Institute of Management Ahmedabad (IIMA), in collaboration with the Wadhwani Foundation, 55% of Indian employees have utilised AI tools in their daily work routines. This statistic underscores the growing integration of AI technologies in various sectors, reflecting a significant shift in how businesses operate and how employees interact with technology.

Widespread Organisational Support for AI Training

Nearly half (48%) of the surveyed employees reported that their organisations provided them with AI training. This trend highlights an increasing commitment from companies to equip their workforce with the necessary skills to thrive in an AI-driven environment. The emphasis on AI training is seen as essential for preparing employees to handle the transformations brought about by these technologies, particularly as AI becomes more embedded in daily operations.

AI Adoption Rates Vary Across Educational Backgrounds

The study reveals notable differences in AI adoption based on educational qualifications. Employees with technical diplomas reported the highest adoption rate at 72%, followed by postgraduates at 64%, and graduates at 39%. This data suggests that individuals with more technical or advanced education are more likely to engage with AI, possibly due to their familiarity with technological concepts and their relevance to their job roles.

Interestingly, technical diploma holders showed greater optimism about AI’s impact, with 83% believing it will create new job opportunities, while 67% expect their roles to be automated. In contrast, postgraduates were less optimistic, with 63% anticipating job automation and only 52% expecting new job creation. These insights reflect a nuanced perspective on how AI might reshape the job market based on educational backgrounds.

Experience and Business Context Influence AI Engagement

Experience and industry context also play crucial roles in AI adoption. Employees with six to ten years of experience had the highest adoption rate at 63%, indicating that mid-career professionals are more likely to integrate AI into their work. On the other hand, entry-level employees showed the lowest adoption rate at just 32%, suggesting that newer entrants into the workforce may require more time or training to adapt to AI technologies.

Anticipated Job Automation and Skill Redundancy

As AI continues to evolve, a significant portion of the workforce is concerned about job automation. The study found that 68% of employees expect their roles to be partially or fully automated within the next five years. Additionally, 40% of respondents believe their current skills will become redundant due to technological advancements. However, there is a prevailing sense of optimism, with 63% of employees expecting AI to create new job roles, offering a potential balance between job displacement and job creation.

AI’s Impact Across Industries

AI adoption varies significantly across industries. The education sector leads with 74% of employees utilising AI tools, followed by the information technology sector at 66% and public administration at 61%. Conversely, industries like retail and trade (31%), infrastructure (38%), and finance and insurance (54%) are trailing behind in AI adoption. The relatively low adoption rate in finance and insurance is particularly surprising given the sector’s potential to benefit from AI-driven efficiencies.

The Future of AI in the Indian Workforce

The findings from this study align with broader trends observed in other reports. For instance, the Work Trend Index 2024 by Microsoft and LinkedIn noted that 92% of knowledge workers in India use AI at work, significantly higher than the global average of 75%. This high adoption rate reflects India’s growing confidence in AI’s ability to enhance productivity and creativity in the workplace. Additionally, the IBM Global AI Adoption Index 2023 highlighted that 59% of large enterprises in India have already deployed AI, with many more exploring its potential.

However, challenges remain, particularly in addressing the skills gap and ensuring that AI tools are used responsibly. Ethical concerns and the complexity of AI integration are cited as significant barriers to widespread adoption, indicating a need for robust governance frameworks and ongoing training initiatives.

Embracing AI While Preparing for its Challenges

The disruption caused by AI is evident, with Indian businesses and employees increasingly recognising the potential of AI to enhance efficiency and drive innovation. Yet, as AI continues to reshape the workforce, there is an urgent need to address the educational and training gaps, particularly for recent graduates and entry-level workers. Organisations must invest in upskilling programs to ensure that all employees can navigate the AI-driven future confidently.