A boon or Bane for the job market? – Discussing how AI is changing employment and wages worldwide.
The Gig Economy: Between Opportunity and Obsolescence
In cities like Bengaluru, Delhi, and Mumbai, millions of workers log onto platforms each morning – not to a desk job, but to an app. The gig economy, once seen as a side hustle haven, has evolved into a primary income source for nearly 88% of Indian gig workers. AI is the unseen engine behind this transformation.
Platforms use AI to match drivers with passengers, cleaners with clients, and designers with businesses. On the surface, this creates efficiency. But underneath, it raises complex questions: Who gets picked for a job? Why is one gig worker prioritized over another? Algorithms, not managers, now make those decisions – yet they are rarely transparent or fair.
As India’s economy races ahead, with a projected 7.5% GDP growth in 2024, demand for both skilled and semi-skilled gig labor is set to soar. However, as AI handles the logistics of matchmaking and performance monitoring, human workers are increasingly reduced to data points. Their creativity, intuition, and judgment—elements machines still cannot replicate – are often undervalued.
This paradox lies at the heart of the modern gig economy: While AI creates new economic opportunities, it also risks flattening the value of uniquely human contributions. The challenge for regulators is clear – ensure gig workers aren’t left at the mercy of opaque algorithms but are instead supported through policies that guarantee transparency, fair pay, and social protections.
Knowledge Work No Longer Safe
If blue-collar work was the first frontier of automation, white-collar jobs are its next conquest. Finance, human resources, and legal services—once believed to require high-level cognitive skills—are now being reengineered by AI. Goldman Sachs predicts that nearly 44% of legal and 46% of administrative work could be automated in the coming decade. Already, AI systems scan contracts, detect fraud, write performance reviews, and even draft legal arguments with increasing accuracy.
This is not just theoretical. Global banks are preparing to cut up to 200,000 roles within the next five years. Even software engineering, once considered immune, faces disruption as generative AI models learn to write, test, and optimize code.
Source: Economic Times
The medical field, too, is transforming. AI can now analyze radiology scans faster than humans. Support roles like transcriptionists, lab analysts, and administrative coordinators face redundancy, even as doctors rely on AI more for second opinions.
Meanwhile, creative professionals—journalists, graphic designers, and musicians—are watching generative AI replicate their work. AI-generated articles, logos, and music tracks are becoming commonplace. While originality still gives humans an edge, the cost advantage of automation often wins in business decisions.
In education, AI tutors and automated grading systems are reshaping classrooms, reducing the need for traditional teaching roles. Only those who can integrate AI into their pedagogy are likely to thrive.
In contrast, sectors like manufacturing are embracing full automation. In China, AI-powered factories now run 24/7 with minimal human intervention. Robots sort, assemble, and package products faster and more efficiently than any human workforce could. These trends hint at a future where human involvement is strategic, not operational.
The Productivity Paradox: Working More in the Age of Automation
A common hope with AI is that it will make work easier, giving us more time to relax, be creative, or simply live. But the data suggests otherwise.
A recent study, The EPOCH of AI, found that workers in AI-exposed jobs—like systems analysts or credit counselors—are now working 3.15 hours more per week compared to their peers. Generative AI tools, while boosting productivity, also create expectations for higher output. Performance-based pay structures incentivize longer hours, not less work.
Worse, AI-enabled surveillance is on the rise. Employers use real-time tracking software to monitor keystrokes, screen time, and response rates. During the pandemic, these tools surged in popularity. Even as offices reopen, the digital leash remains.
This leads to a worrying dynamic: workers are not only doing more, they’re being watched more closely. Non-work screen time has declined, while screen-based leisure (like TV) remains unchanged—indicating a passive, exhausted workforce that no longer seeks active engagement after hours.
In warehouses, AI monitors movement to the second. At Amazon, workers report receiving warnings for “time off task” as short as a few minutes. The result? Physical exhaustion, mental stress, and burnout—all in the name of efficiency.
AI may promise a better work- life balance. But without regulation, it often delivers the opposite.
Source: https://www.voronoiapp.com/other/The-Impact-of-AI-on-Workforces-by-Country-Income-Level-658
The Double Disruption: Wage Polarization and Inequality
According to the World Economic Forum, we’re entering an era of “double disruption”—where COVID-accelerated automation meets AI-led transformation. The WEF estimates 85 million jobs will be displaced by 2025. While 97 million new roles could emerge, they won’t be evenly distributed.
Brookings Institution labels this trend “wage polarization.” High-skilled, AI-complementary roles see wage growth; low-skilled, routine jobs see stagnation or decline. A data analyst who
leverages AI sees rising pay. A delivery worker whose job can be automated faces shrinking hours and flat wages.
AI doesn’t just widen the skills gap—it widens the wealth gap. Capital owners who invest in automation reap exponential returns while labor wages lag. The societal implications are stark: greater inequality, social unrest, and a sense of economic dislocation for large swaths of the population.
The Role of Education: Equipping a Future-Ready Workforce
The solution doesn’t lie in resisting AI but in adapting to it.
India is taking bold steps. With AI projected to contribute $17 billion to its economy by 2027, initiatives like “AI for India 2.0” and “AI For All” aim to democratize access to AI literacy. These programs offer content in 11 languages, ensuring that rural and urban learners alike can participate in the digital economy.
Universities are setting up AI labs where students can build models, test algorithms, and solve real-world problems. Faculty members are integrating AI into coursework, moving from theory to application across disciplines—from ethics and policy to healthcare and business.
Stackable, modular credentials are replacing traditional degrees. Learners can now gain micro-skills in data science, prompt engineering, or robotics—keeping pace with a job market that changes every six months.
The goal is not just employability—it’s leadership. India is nurturing a generation of AI-native innovators who will shape, not just survive, the future.
AI and Global Trade: The Rise of the Digital Silk Road
Beyond individual jobs, AI is reshaping how nations do business.
Global trade is becoming smarter. AI now manages customs clearance, detects compliance issues, forecasts supply chain risks, and automates logistics. For small businesses in developing nations, this means faster, cheaper access to international markets.
Experts estimate that AI could boost global trade by up to 14% by 2040. The greatest gains? Likely to come from developing economies, where reduced trade costs will unleash entrepreneurial potential.
But there’s a flipside. As AI replaces routine tasks, jobs in advanced economies may vanish. The benefits of AI-led globalization may be distributed unevenly—fueling geopolitical tensions and economic nationalism.
Global institutions like the WTO must act quickly. We need frameworks for AI governance in trade – standards for ethics, data privacy, and fair competition. The world can no longer afford a Wild West of AI in commerce.
Conclusion: A Future Worth Building
AI is not destiny – it is a tool. And like every tool in history, its impact depends on how we use it.
The future of work will be shaped not just by code but by choices—how governments regulate, how businesses implement, and how individuals upskill. It will depend on whether we use AI to enhance human potential or merely to replace it.
This isn’t just about jobs. It’s about dignity, creativity, and fairness in a world that is rapidly changing. In this race between automation and adaptation, the winners will not be those who resist change – but those who embrace it, responsibly.
Let’s build that future – together.
Contributor: Team Leveraged Growth
