Mumbai-based entrepreneur and Atomberg founder Arindam Paul has raised significant concerns regarding the potential impact of artificial intelligence (AI) on India’s white-collar job market.

In a recent LinkedIn post, Paul highlighted that advancements in AI could drastically reduce employment opportunities in sectors like IT services and BPO, which could severely threaten the economic stability of India’s middle class.

Manufacturing Sector: A Major Concern

Paul pointed out that India’s manufacturing sector is not generating sufficient well-paying jobs to offset possible losses caused by AI-driven automation.

He stated, “I don’t think most people, including our leaders, understand how big a threat AI could be to our economy. Our manufacturing is nowhere close to where it should be in terms of generating jobs that pay Rs 3-6 lakh per year.”

The Future of IT and BPO Jobs

According to Paul, IT services and BPO sectors will likely see considerable reductions in their workforce. He remarked, “Almost 40-50 percent of white-collar jobs that exist today might cease to exist.”

He contended that such a reduction would potentially signal the end of the middle class and disrupt the consumption patterns that drive the economy.

Corporate Profit vs. Employment

Paul also expressed concern over the corporate world prioritizing AI-driven cost-cutting over the broader implications for employment. He warned, “All corporates today are happy that AI will reduce manpower, increase efficiency, and improve the bottom line.”

However, he cautioned that this mindset fails to recognize that without jobs and money in consumers’ hands, businesses will ultimately suffer.

The Need for a Robust Manufacturing Sector

While Paul remains optimistic about continued GDP growth, he asserts that without significant expansion in India’s manufacturing sector, an AI-driven employment crisis is inevitable.

Mixed Reactions on LinkedIn

Paul’s post, which garnered over 700 likes and numerous comments, sparked a mixture of support and dissent among professionals.

One user echoed his sentiment: “You’ve stated the inevitable. Unless today’s white-collar jobs are replaced with an AI-driven profile, we are heading towards a crisis.”

Different Perspectives on AI’s Impact

Contrarily, another commenter argued that AI’s repercussions would largely be confined to specific sectors, claiming, “I feel this mostly applies to digital or IT-related jobs.”

They suggested that non-digital and manufacturing roles would likely remain unscathed or could even evolve into new opportunities driven by AI.

Concerns Over Automation

Many users expressed anxiety over automation leading to widespread job losses. “We have a low-skilled, low-productivity workforce that doesn’t understand global competition,” one user stated.

Optimism Amidst Disruption

In contrast, several commenters took a more optimistic viewpoint, arguing that AI would eventually create new job opportunities, similar to past technological upheavals.

“AI will disrupt jobs, but history shows that every major shift—whether the Industrial Revolution or the rise of IT—has both displaced and created jobs,” one asserted.

The Vicious Cycle of Job Loss

Another commenter emphasized a broader economic concern stating, “If AI keeps replacing human workers, won’t that lead to less spending power and, ultimately, fewer customers for businesses? It’s a vicious cycle.”

The Path Forward for India

The rapid advancements in AI are not just impacting perceptions but are leading to crucial discussions surrounding the future of employment in India.

Experts believe it is imperative for India to develop policies that promote workforce adaptability and foster job creation in emerging sectors.