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NEW DELHI: The Economic Survey 2024-25 has raised concerns over the disruptive impact of artificial intelligence (AI) on jobs, warning that unchecked automation could exacerbate inequality and strain public finances.
The report argues that businesses must integrate AI with sensitivity, or face the prospect of taxation on AI-driven corporate profits to offset job losses.
The pre-budget document underscores AI’s potential to transform industries, from healthcare to finance, but warns that it could displace large sections of the workforce, particularly in middle- and lower-income segments.
“If companies do not optimise the introduction of AI over a longer horizon and do not handle it with sensitivity, the demand for policy intervention and fiscal support to compensate will be irresistible,” the Survey said.
Citing an International Monetary Fund (IMF) study, the survey suggests that governments may be compelled to impose taxes on corporate profits derived from AI-driven labour replacement. Such a move, it warns, could ultimately stifle economic growth and productivity.
The Survey points to AI’s rapid progress in decision-making capabilities across fields such as law, education, criminal justice and business analytics. Major AI developers, including OpenAI, anticipate office-ready AI workers by 2025, further intensifying fears of job displacement.
Agencies