Indian IT Firms Gearing Up For AI Transition

Rishad Premji, the executive chairman of Wipro, has made some thought-invoking observations on artificial intelligence (AI) and generative AI. Addressing the ongoing Bengaluru Tech Summit, he said that some jobs would perish because of AI & Gen AI. “I think that two-three elements that people think are very important as regards disruption of the technology process. The reality is that some jobs that will disappear,” Premji said. According to him the technology and tech services industry is probably going through the most disruptive and profound change in the last 17-18 years with Gen AI because of the rapid pace of technological innovations. These observations are important in many ways. For the first time, an acknowledged czar of the Indian IT services industry has recognised the fact that jobs will disappear because of AI and GenAI. Despite knowing the most obvious impact of AI on jobs, most industry leaders have shied away from telling the whole truth. In a country like India, where jobs are few, their reluctance is understandable given the sensitivities attached to job losses in general.

Secondly, Premji’s statement also indicates that technology industry as a whole is still figuring out the possible impact of AI and GenAI on their business operations. No doubt, they have emerged as the most disruptive technologies of this decade and their impact on all forms of operations will be profound. But the nature and shape of this disruption remain unknown to a large extent. In this context, Indian IT services providers, which have a large part of their business coming from time and material (T&M) model, are trying to adopt fast to the changing realities. According to a report by McKinsey, AI will lead to around 12 million occupational transitions by 2030. Such drastic job transitions last happened during the Covid-19 pandemic. But the worry is not that jobs will be lesser in numbers due to AI. Rather, the concern is on ensuring a smooth transition for people whose skillsets will become obsolete due to AI. For instance, content creation, digital marketing, accounting, coding and many other skills are witnessing rapid automation through AI.

People will or are getting replaced through AI-powered solutions even as we speak. These are the employees, who need to be upskilled for better job roles and their own prospects. Previous technological breakthroughs have shown that more jobs were actually created, which was far in excess of job losses. But it happened with a lag. And the advent of AI and GenAI may not follow a very different path. Therefore, upskilling of those workers likely to get affected is essential to reduce the adverse effect of AI on jobs to the minimal. As it is, data sits at the heart of every AI model. The way it is being handled with maximum focus on data privacy will determine the qualitative outcome of AI revolution. Indian IT firms with their decades of digital experience and huge talent base are best suited to handle the AI transition smoothly. It’s just that the transition should happen with minimal impact on their employees.