New Delhi, October 4 (Daily Kiran) : Artificial Intelligence (AI) is being hailed as a transformative technology capable of enhancing productivity and accelerating economic activities worldwide. Its increasing application in sectors such as customer service, medical diagnostics, coding, and content creation presents unprecedented opportunities. However, a recent report warns that technological revolutions do not always translate into immediate widespread social prosperity, highlighting the need for vigilance regarding the job market in the age of AI.
According to an article published in India Narrative, AI could create a scenario referred to by economic historians as the “Angels Pause.” This term describes a situation where there is a rapid increase in productivity and wealth, but improvements in the income and living standards of the average worker lag significantly behind.
The article draws parallels with the Industrial Revolution in Britain. In the 19th century, there was a substantial rise in industrial production, but it took a long time for workers’ living standards and wages to improve. This suggests that the benefits of technological advancements may take time to reach all segments of society.
The report notes that past industrial revolutions generated large-scale employment by giving rise to entirely new industries. The textile industry created factory jobs, the automobile sector provided millions of jobs in manufacturing and services, and the digital revolution led to the emergence of software, e-commerce, and platform-based economies. AI is also expected to create new professions that are difficult to envision today, although the transition period may present challenges.
This shift is particularly significant for developing countries like India. The nation has established a strong global presence through labor-intensive service sectors such as IT outsourcing, business process management, and customer support. However, many tasks, including basic coding, data entry, customer assistance, and document processing, can now be performed more efficiently and cost-effectively by AI.
Nonetheless, the report emphasizes that AI brings substantial opportunities for India. It can play a crucial role in enhancing agricultural productivity, improving healthcare services, streamlining logistics, expanding educational access, and making governance more effective. Numerous Indian startups are developing AI-based solutions in fintech, language technology, and other fields.
The article argues that the real challenge lies not in adopting AI but in ensuring that the productivity gains benefit a broad swath of society rather than being confined to a few large companies.
The report also highlights that during the Industrial Revolution, governments were slow to respond to the deteriorating conditions of workers and rising inequality. Eventually, balance was achieved through labor movements, labor rights, public education, and social welfare policies.
Similarly, the article contends that institutional preparations will be necessary in the age of AI. Policymakers must proactively prepare for changes in the job market to prevent technological transformations from leading to social instability.
The report stresses the need for significant investment in large-scale digital education, upskilling, and reskilling programs. Universities and vocational training institutions must adapt their curricula to meet rapidly changing skill requirements.
Additionally, there is a call to strengthen social security mechanisms for workers affected by technological changes.
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