AI and Labor in India: Balancing Innovation with Accountability

The Economic Survey highlights the need to update regulatory frameworks to align artificial intelligence (AI) innovation with societal values. It explores AI's impact on labor, especially in India, emphasizing policy intervention to balance innovation benefits with social and economic costs.

The Economic Survey, released on Friday, emphasizes the necessity of revisiting regulatory frameworks to ensure artificial intelligence (AI) use aligns with societal values. The document stresses the importance of balancing innovation, accountability, and transparency within the AI landscape.

Citing an International Monetary Fund (IMF) paper, it explores the prospect of taxing corporations' incremental profit generated by substituting human labor with AI. The survey dedicates an entire chapter to examining AI's impact on labor, particularly underlining how this issue is magnified for India due to its sizable population and lower per capita income.

The survey underscores the urgency for structural changes, such as educational reforms and safety nets, to manage economic and social impacts. It advocates a tripartite effort involving government, private sector, and academia to harness AI's productivity gains for inclusive growth, recognizing India's unique demographic advantage and economic landscape.