A recent report by the British Standards Institute (BSI) has revealed a striking statistic: 9 in 10 Indian business leaders believe that artificial intelligence (AI) will lead to job displacement in the near future. This finding comes at a time when AI is being increasingly integrated into business operations across various industries, and discussions about its impact on the workforce are becoming more prevalent.
The report, issued by BSI, a global leader in business improvement and standards, highlights the dual nature of AI's rise—while there is optimism about the productivity gains and innovation that AI tools can bring, there is also concern about the potential displacement of human labor, especially in industries reliant on repetitive and labor-intensive tasks.
AI is reshaping industries worldwide, from manufacturing and logistics to healthcare and customer service. In India, the integration of AI has accelerated, with businesses keen to harness its potential to improve efficiency and reduce costs. However, with these technological advancements comes the fear of job losses, particularly in sectors where AI-powered automation can perform tasks traditionally handled by human workers.
According to the BSI report, many Indian business leaders recognize that while AI alone may not directly replace jobs, the combination of AI with robotics and other emerging technologies could lead to significant shifts in the workforce. As AI systems become more sophisticated, businesses are increasingly using these tools to automate repetitive tasks, optimize workflows, and reduce the need for human intervention in labor-intensive roles.
Theuns Kotze, Managing Director of BSI Group India Private Limited, highlighted this sentiment, noting that AI's impact may be particularly profound in industries like construction, manufacturing, logistics, and even hospitality. "AI alone will not replace jobs," Kotze explained, "but AI paired with robotics or other technology may have a sizeable impact in the long term, potentially reducing reliance on people for repetitive, labor-intensive, and often risky tasks on construction sites, in factories and warehouses, or even restaurants."
Industries Most Likely to be Affected
Construction: In the construction industry, AI-powered robots and machines are increasingly being used for tasks such as bricklaying, excavation, and structural analysis. These technologies improve efficiency and safety, reducing the need for human workers to perform dangerous jobs in hazardous conditions.
Manufacturing: Factories and manufacturing plants have already begun adopting AI and robotics to streamline production lines, inspect products for quality control, and manage supply chains. This shift could reduce the need for assembly line workers and supervisors who traditionally handled these responsibilities.
Logistics and Warehousing: With the rise of e-commerce, logistics and warehousing are seeing rapid automation. AI-driven systems can sort packages, manage inventory, and optimize delivery routes more efficiently than human workers, leading to potential job reductions in these sectors.
Hospitality and Restaurants: In restaurants and fast-food chains, AI is being paired with robotics to automate food preparation, order-taking, and delivery processes. From robot chefs to AI-powered chatbots that handle customer orders, these technologies are reducing reliance on human labor in certain hospitality roles.
Despite concerns about job displacement, many Indian business leaders remain optimistic about the overall impact of AI. They believe that while AI may displace some jobs, it will also create new opportunities in tech-driven fields. The report emphasizes that AI can enhance productivity, streamline operations, and foster innovation, which could lead to the emergence of new roles requiring advanced skills.
This is a critical point in the ongoing debate about AI’s impact on employment. As Kotze pointed out, “The conversation should not only be about job displacement but also about job transformation.” AI has the potential to augment human capabilities, enabling workers to focus on higher-level tasks such as problem-solving, decision-making, and creative innovation. This shift in the nature of work could open new avenues for employment, particularly in tech, data analysis, and AI system management.
As AI continues to evolve, the question of how businesses and governments can prepare for its impact on the workforce becomes increasingly urgent. The BSI report suggests that organizations must invest in upskilling and reskilling programs to help workers transition into new roles created by AI. Business leaders also need to adopt forward-thinking strategies that balance automation with human labor, ensuring that technological advancements do not lead to mass unemployment.
One approach is to focus on human-AI collaboration, where AI tools assist workers in performing tasks more efficiently rather than completely replacing them. By integrating AI into workflows in a way that supports rather than displaces workers, businesses can achieve greater productivity while retaining their workforce.
Moreover, governments and educational institutions need to play a proactive role in preparing the next generation of workers for an AI-driven economy. This includes updating curriculums to focus on digital literacy, AI skills, and robotics, and encouraging a lifelong learning mindset to help current workers stay relevant in the face of technological disruption.
The BSI report underscores the importance of understanding AI’s potential both as a driver of innovation and as a disruptor of traditional jobs. While there is widespread concern about job displacement, there is also recognition that AI can bring significant benefits to businesses and workers alike. By pairing AI with robotics and other emerging technologies, businesses can increase efficiency and safety in industries such as construction, manufacturing, and logistics.
However, the report makes it clear that the future of work will depend on how well businesses, governments, and workers adapt to these changes. The focus must be on upskilling, reskilling, and creating new opportunities for collaboration between humans and machines. AI may change the job landscape, but with the right strategies, it can also create a more productive and innovative future for everyone involved.
As AI continues to reshape the workforce, the key challenge will be ensuring that both businesses and workers are prepared for this new reality—one where technology plays an increasingly central role in how work is done.