Artificial intelligence poses risks to job market stability

The rapid advancement of artificial intelligence offers significant potential for productivity gains in sectors such as medical diagnostics, customer service, and content generation. However, experts warn that this technological shift could trigger a modern version of ‘Engels’ Pause,’ a historical phenomenon where productivity and wealth increase while wages and living standards for workers remain stagnant.

While previous industrial revolutions eventually created new industries and employment opportunities, the transition period can be unequal. For developing economies like India, the impact is particularly complex. India’s large labor-intensive service sectors, including IT outsourcing, business process management, and customer support, face potential disruption as AI becomes capable of performing tasks like basic coding, data entry, and document processing at higher speeds and lower costs.