“Technology should amplify human potential, not replace it.” - Fei-Fei Li, Co-Director, Stanford Human-Centered AI Institute
The rise of automation
With great struggle, many labour laws across the world brought dignity to the mass of humanity toiling hard in factories and fields. Now, Generative AI is rapidly reshaping industries, marking the next major productivity frontier. According to experts, automation could affect up to 55% of current work activities by 2035. From manufacturing to services, AI-driven systems are poised to transform workflows and this raises serious questions about how labour laws will keep pace.
Legal frameworks across the globe
The European Union’s upcoming Platform Work Directive (2024) sets strong precedents for algorithmic transparency and human oversight. Spain’s Riders’ Law (2021) mandates disclosure of automated systems and safeguards for gig workers. Other EU members, along with nations like Malta and several Latin American countries, are moving toward impact assessments and transparency standards in AI-mediated employment.
India’s policy vacuum on AI and labour
India’s current labour codes, while covering wages, safety, and industrial relations, are silent on algorithmic management or automated dismissals. The country’s gig economy, employing millions, is especially exposed. Without clear regulation, workers risk losing jobs to automation with no recourse for redress or retraining. Gig workers have often been likened to low-wage slave labour, who really have no choice but to toil on.
Lessons from global models
Countries are testing diverse policy options such as requiring transparency when algorithms influence hiring, ensuring a “human-in-the-loop” for job-related decisions, and mandating algorithmic impact audits. Some are even exploring dedicated funds for retraining displaced workers, a step India could consider seriously.
Building a human-centred AI future
For India to emerge as an AI leader, legal frameworks must evolve to protect its workforce while promoting innovation. Transparent systems, accountability in algorithmic decisions, and proactive skilling can together ensure a fair transition to the AI era.
Summary
As AI automates millions of jobs, India faces a crucial choice: adapt its labour laws or risk widening inequality. Global models show that human oversight, transparency, and retraining can balance progress with protection.
Food for thought
Can India’s legal system evolve fast enough to ensure fairness in an algorithm-driven economy?
AI concept to learn: Algorithmic management
Algorithmic management uses AI systems to allocate tasks, evaluate performance, and make employment decisions. While efficient, it raises questions of fairness, accountability, and human oversight, especially when algorithms decide who gets hired or fired.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]


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