“AI will not replace humans, but humans who use AI will replace those who do not,” -Andrew Ng, AI Pioneer
Wage gaps growing wide
Artificial intelligence is reshaping India’s white-collar workforce and widening wage gaps between high-end tech roles and routine jobs. The trend is now firmly visible. Premiums for specialised AI skills such as senior machine learning engineers and cloud architects are soaring, while mid-level and routine jobs are stagnating or shrinking. Legacy IT and basic operations are struggling to keep pace. The white-collar ladder is witnessing pressure at the middle and bottom tiers, even as AI specialists trade up.
Indian middle-class under pressure
With up to 40 per cent of roles potentially impacted by AI, mid-class incomes are at risk as repeatable tasks in operations, support, and testing face automation. Lower-wage, routine jobs are especially vulnerable to being automated or pushed into gig formats, leading to reduced bargaining power and underemployment for many. Companies are replacing mid-level jobs with leaner teams that combine higher productivity and AI capabilities.
Reskilling and displacement
Business leaders stress that without broad and accessible reskilling, wage gaps will continue to widen and stall careers for many workers. Firms need to help employees transition to new digital roles through learning programs and mobility paths, otherwise income strain and stalled career progression will become widespread. As companies prioritise automation for repetitive work, some hiring slows and contract or gig-based employment grows. This tightening job market reshapes how workers view compensation and stability, often leading to lower offers and weaker negotiating positions.
Inclusion needed
To reduce gaps and protect jobs, experts argue that employers must invest in upskilling and redesign roles so AI augments rather than replaces workers. Creating opportunities beyond metropolitan hubs could also balance hiring and open doors for fresh talent in lower-cost regions.
Summary
AI is accelerating structural shifts in India’s white-collar workforce, boosting wages for specialised roles while pressuring mid and routine jobs, widening wage disparities and challenging traditional career paths. Without reskilling and inclusive strategies, these trends risk deepening inequality.
Food for thought
As AI changes the labour market, how can India ensure that technological progress benefits all workers rather than just a specialised few?
AI concept to learn: Generative AI
Generative AI refers to systems that create content such as text, code, images, or data based on patterns learned from large datasets. It is widely used to automate repeatable tasks, assist with problem solving, and enhance productivity, but also requires skilled oversight and ethical guidelines.
[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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