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DEFANGING AI

  • AI should be deployed for purposes that raise productivity but do not displace workers in the country, makes good sense, given India’s problem of unemployment
  • For decades, production has been highly capital intensive despite the abundant availability of labour
  • Rules that make it hard to let go of workers also act as a disincentive to hire more than the skeletal minimum needed to get various tasks done

What can be done?

  • Regulatory flexibility on labour has been proposed by reformers who say that a lot more hiring will happen if companies lose the fear of a permanent burden
  • If businesses are able to expand or shrink their workforce as market conditions change, goes the argument, they might go slow on the mechanization of routine tasks.
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September 2022
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