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New Delhi: There is a debate going on all over the world regarding Artificial Intelligence i.e. AI. Will AI eat up jobs? Is India’s IT sector in danger? Meanwhile, former RBI Governor Raghuram Rajan has given a big statement. He says that India’s service sector will definitely be shaken by AI, but will not break.

In recent interviews and programs, Raghuram Rajan clearly said that the talk of ‘Doomsday’ i.e. destruction regarding AI is being exaggerated. According to him, change will definitely come. Especially India’s software and IT service sector will be affected. But this does not mean that the entire sector will disappear.

Rajan says that AI will automate many routine tasks. Changes will be seen in tasks like coding, testing, back-office processes, customer support. This may reduce some jobs. But at the same time the demand for new types of skills will also increase. That means, opportunities will also be created for those who update themselves. He also said that many companies in the world have still not been able to implement AI on a large scale. In such a situation, Indian IT companies have an opportunity to provide service to global clients by creating AI solutions. That means opportunity is also associated with danger.

India has a big opportunity

India’s service sector is a major part of the country’s economy. IT industry provides employment to millions of people. In such a situation, AI will directly impact employment and exports. Rajan believes that there will be disruption in the initial phase. Companies will try to get more work from less people. But in the long run, new technology also creates new industries.

He also pointed out that India should not remain just a cheap labor market. If AI is growing rapidly then India will have to focus on high-end skills, research and innovation. Otherwise we will remain dependent only on outsourcing. Rajan clearly said that instead of being afraid, there is a need to prepare. The education system will have to be updated. The youth will have to be taught skills like data, machine learning, cyber security, AI tools. Only then will India be able to withstand this change.

A big question regarding AI is whether it will increase income inequality? Rajan has said earlier also that technology often increases the gap between skilled and unskilled people. Therefore, policy makers will have to be cautious. Overall, Raghuram Rajan’s message is clear. AI will cause shock, but the system will not collapse. Those countries and companies which adjust quickly will be ahead. This is not the time for India to panic, but to upgrade itself. Now the question is this. Will India use this wave of AI as an opportunity, or will it remain just a victim of change? The coming few years will answer this question.