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2 Feb 2026·Source: The Indian Express
4 min
EconomyScience & TechnologySocial IssuesNEWS

AI's Impact on Jobs: Committee to Optimize Growth, Employment

Committee formed to assess AI's impact on jobs, skills, and growth.

AI's Impact on Jobs: Committee to Optimize Growth, Employment

Photo by Igor Omilaev

The Union Finance Minister announced the formation of a high-level 'Education to Employment and Enterprise' Standing Committee. This committee will focus on optimizing the potential for growth, employment, and exports in the services sector. It will also assess the impact of emerging technologies, including Artificial Intelligence (AI), on jobs and skill requirements. The committee will identify services sub-sectors with growth potential, address policy and regulatory issues, and propose measures for embedding AI in the education curriculum. It will also focus on upskilling technology professionals, matching workers with jobs, and attracting skilled diaspora. This announcement comes amid concerns about AI's impact on jobs, with enterprises increasingly turning to automation. The Economic Survey 2025-26 highlighted the need for sectoral mapping of jobs outside the white-collar workspace.

Key Facts

1.

Committee: 'Education to Employment and Enterprise' formed

2.

Focus: Services sector growth, employment, exports

3.

Assessment: Impact of AI on jobs and skills

UPSC Exam Angles

1.

GS Paper 3 (Economy): Impact of technology on employment, skill development

2.

GS Paper 2 (Governance): Government policies and interventions for development of various sectors

3.

Potential for questions on government initiatives, economic impact, and ethical considerations of AI

Visual Insights

AI's Impact on Jobs: Key Considerations

This mind map outlines the key considerations regarding AI's impact on jobs, as highlighted by the formation of the 'Education to Employment and Enterprise' Standing Committee.

AI & Jobs

  • ●Committee Objectives
  • ●AI Impact Assessment
  • ●Policy & Regulatory Issues
  • ●Education & Upskilling
More Information

Background

The rise of Artificial Intelligence (AI) has sparked debates reminiscent of earlier technological revolutions. The Industrial Revolution in the 18th and 19th centuries brought about significant changes in employment, shifting labor from agriculture to manufacturing. This transition was not without its challenges, including displacement of workers and the need for new skills. Historically, technological advancements have often led to both job creation and job destruction. The introduction of computers in the late 20th century automated many clerical tasks, leading to concerns about widespread unemployment. However, it also created new jobs in software development, IT support, and data analysis. The Keynesian economics perspective suggests that technological unemployment is a short-term problem that can be addressed through government intervention and investment in education and training. India's policy response to technological change has evolved over time. Early policies focused on promoting indigenous industries and protecting them from foreign competition. More recently, the emphasis has shifted towards fostering innovation and creating a skilled workforce. The Skill India Mission, launched in 2015, aims to provide vocational training to millions of young people, equipping them with the skills needed to succeed in a rapidly changing job market. Globally, countries are grappling with the implications of AI for employment. Some are investing heavily in AI research and development, while others are focusing on mitigating the potential negative impacts on workers. The World Economic Forum has highlighted the need for lifelong learning and reskilling to prepare workers for the future of work.

Latest Developments

The Indian government is actively exploring ways to harness the potential of AI while mitigating its risks. The establishment of the 'Education to Employment and Enterprise' Standing Committee reflects this commitment. This committee will likely work in coordination with bodies like NITI Aayog, which has been tasked with developing a national strategy for AI. One of the key challenges is to ensure that the education system is aligned with the evolving skill requirements of the industry. This involves not only updating the curriculum but also providing opportunities for continuous learning and upskilling. The government's focus on embedding AI in the education curriculum is a step in this direction. Initiatives like the National Education Policy 2020 emphasize the importance of vocational training and skill development. There is an ongoing debate about the impact of AI on different sectors of the economy. While some sectors, such as IT and finance, may benefit from increased automation and efficiency, others, such as manufacturing and agriculture, may face greater challenges. The Economic Survey 2025-26's call for sectoral mapping of jobs outside the white-collar workspace highlights the need for a nuanced understanding of these impacts. Looking ahead, the government is likely to focus on creating a supportive ecosystem for AI innovation and adoption. This includes providing funding for research and development, promoting collaboration between industry and academia, and developing a regulatory framework that fosters innovation while protecting workers' rights. The success of these efforts will depend on effective coordination between different government departments and stakeholders.

Frequently Asked Questions

1. What is the main purpose of the 'Education to Employment and Enterprise' Standing Committee?

The committee aims to optimize growth, employment, and exports in the services sector, while also assessing the impact of AI on jobs and skills.

2. What are the key areas the 'Education to Employment and Enterprise' Standing Committee will focus on?

The committee will focus on identifying services sub-sectors with growth potential, addressing policy and regulatory issues, embedding AI in education, upskilling technology professionals, matching workers with jobs, and attracting skilled diaspora.

3. Why is the government focusing on the impact of AI on jobs now?

The government is focusing on this issue because enterprises are increasingly turning to automation, raising concerns about potential job displacement and the need for workforce adaptation.

4. How does the current focus on AI's impact on jobs relate to historical technological shifts like the Industrial Revolution?

The rise of AI is sparking debates similar to those during the Industrial Revolution, which also brought significant changes in employment, shifting labor and requiring new skills. Both involve worker displacement and the need for upskilling.

5. What is the significance of the 15.5% safe harbor margin mentioned in the context of IT services?

As per the provided information, the significance of the 15.5% safe harbor margin for IT services is not explained.

6. How might the 'Education to Employment and Enterprise' Standing Committee address the challenge of embedding AI in the education curriculum?

The committee will propose measures for embedding AI in the education curriculum, ensuring that future generations are equipped with the skills needed to thrive in an AI-driven economy.

7. What role might NITI Aayog play in the government's strategy to address the impact of AI on jobs?

NITI Aayog has been tasked with developing a national strategy for AI, suggesting it will play a key role in coordinating and guiding the government's overall approach.

8. What are the potential benefits and drawbacks of increased automation due to AI, particularly concerning employment?

AI-driven automation can increase efficiency and productivity but may also lead to job displacement, requiring workers to adapt and acquire new skills. The committee will likely address these challenges.

9. From an ethical standpoint, what considerations should guide the integration of AI in the education system and the workforce?

Ethical considerations should focus on ensuring fairness, transparency, and accountability in AI systems, as well as mitigating potential biases and protecting workers' rights and privacy.

10. What specific skills should technology professionals focus on to remain competitive in an AI-driven job market?

Technology professionals should focus on upskilling in areas such as AI development, data science, machine learning, and AI ethics to remain competitive. The committee will likely provide guidance on this.

Practice Questions (MCQs)

1. Consider the following statements regarding the 'Education to Employment and Enterprise' Standing Committee: 1. It was recently announced by the Union Finance Minister. 2. The committee aims to assess the impact of Artificial Intelligence (AI) on jobs and skill requirements. 3. It will only focus on the IT sector for identifying services sub-sectors with growth potential. Which of the statements given above is/are correct?

  • A.1 and 2 only
  • B.2 and 3 only
  • C.1 and 3 only
  • D.1, 2 and 3
Show Answer

Answer: A

Statement 1 is CORRECT: The Union Finance Minister announced the formation of the 'Education to Employment and Enterprise' Standing Committee. Statement 2 is CORRECT: The committee will assess the impact of emerging technologies, including Artificial Intelligence (AI), on jobs and skill requirements. Statement 3 is INCORRECT: The committee will identify services sub-sectors with growth potential, not exclusively in the IT sector.

2. Which of the following is NOT a stated objective of the 'Education to Employment and Enterprise' Standing Committee?

  • A.Optimizing the potential for growth, employment, and exports in the services sector.
  • B.Addressing policy and regulatory issues affecting the services sector.
  • C.Proposing measures for embedding AI in the education curriculum.
  • D.Overseeing the implementation of the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA).
Show Answer

Answer: D

Options A, B, and C are stated objectives of the committee. Option D is incorrect as the committee's focus is on the services sector and AI's impact, not on rural employment schemes like MGNREGA.

3. The Economic Survey 2025-26 highlighted the need for which of the following in the context of AI's impact on jobs?

  • A.Sectoral mapping of jobs outside the white-collar workspace.
  • B.Complete automation of all government services.
  • C.Increased investment in traditional manufacturing industries.
  • D.Restriction of AI development to prevent job losses.
Show Answer

Answer: A

The Economic Survey 2025-26 specifically highlighted the need for sectoral mapping of jobs outside the white-collar workspace to understand the impact of AI on different sectors.

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