At a time when artificial intelligence is spreading across industries, the Economic Survey 2025-26 has said that AI has not yet led to large-scale job losses in India, but warned that risks could rise in the medium term as adoption deepens.
The Survey noted that most studies so far show AI is changing task profiles and increasing demand for specific skills, rather than causing mass unemployment. This trend is especially visible in the services sector, where AI is largely being used as an assistive tool alongside human workers. However, it cautioned that the current “calm” may not last, and said complacency would be risky once companies move from pilot projects to full-scale integration, particularly in routine and rule-based roles.
According to the document, AI should be seen both as a productivity enhancer and a potential disruptor in the labour market. It said India’s large and young workforce could benefit if policies guide investments toward augmentation, where humans and AI work together, instead of pure substitution.
The Survey stressed the importance of strengthening skilling and re-skilling systems to prepare workers for these changes. It called for expanding STEM education, improving data literacy, and supporting mid-career professionals whose roles are more vulnerable to automation.
It also highlighted that future challenges may not only be about job numbers. Issues such as job quality, wage inequality, and the regional concentration of high-skill AI roles could become more serious as AI adoption increases. The Survey recommended close and continuous tracking of sector-wise employment data as AI use spreads across the economy.
Overall, the Economic Survey underlined that while AI has not yet disrupted employment at scale, proactive policy action is needed to manage future risks and ensure the benefits of technology are widely shared.
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