CEA Nageswaran Cautions Private Sector On AI Deployment Impact On Employment

(MENAFN- KNN India) New Delhi, May 30 (KNN) India's Chief Economic Advisor V. Anantha Nageswaran warned the private sector on Thursday against excessive deployment of artificial intelligence tools that could negatively impact employment opportunities, emphasising the country's need to generate eight million additional jobs annually.

Addressing industry leaders at the Confederation of Indian Industry's Annual Business Summit 2025, Nageswaran argued that implementing comprehensive AI systems represents a business policy decision rather than an inevitable technological progression.

He stressed that companies retain the discretion to determine appropriate limits for AI deployment and identify areas where human labour should be maintained.

The Chief Economic Advisor highlighted India's employment challenges, stating that the country must create a minimum of eight million livelihoods each year, excluding the agricultural sector.

He acknowledged that competitiveness and productivity requirements would necessitate increased deployment of graphics processing units and AI engines, but emphasised the need for balanced policies.

Nageswaran advocated for a dual approach that incorporates capital-led growth while simultaneously focusing on labour-intensive manufacturing. He indicated that addressing this challenge requires collaboration between the business community and government rather than relying solely on public policy interventions.

The timing of these remarks follows statements made by TCS Chairman N. Chandrasekaran in the company's annual report, where he discussed the potential emergence of 'dark factories' powered by autonomous robots and AI agents.

These facilities are designed to operate with minimal human involvement, representing a significant shift in manufacturing approaches.

During his address, Nageswaran referenced research by an independent AI analyst based in Berkeley, California, which demonstrated that developing end-to-end AI agents constitutes a technological and policy choice rather than a predetermined outcome. He emphasised that organisations can strategically determine implementation boundaries and identify optimal integration points for human labour.

The Chief Economic Advisor also addressed concerns regarding the Indian private sector's financial performance, noting that profit growth has outpaced both capital formation and employee compensation increases.

He characterised this trend as unsustainable for the country's long-term economic development over the next 25 to 30 years.

Nageswaran's statements reflect broader global discussions about artificial intelligence's impact on employment markets and the need for balanced approaches to technological adoption that consider both economic competitiveness and social responsibilities.

(KNN Bureau)

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