AI Will Replace 40-50% of Certain Jobs in India; Atomberg Founder Forecasts Tough Times

Mumbai-based entrepreneur Arindam Paul, founder of Atomberg, has ignited a crucial debate on LinkedIn about the potential impact of artificial intelligence (AI) on India’s job market. In a thought-provoking post, Paul warned that AI could eliminate 40-50% of white-collar jobs, particularly in the IT and BPO sectors, posing a significant threat to India’s middle class and economic growth. Paul highlighted the lack of well-paying jobs in India’s manufacturing sector, which he believes is ill-equipped to absorb the workforce displaced by AI. “Our manufacturing sector is nowhere close to generating enough jobs that pay Rs 3-6 lakh per year. Meanwhile, IT services and BPOs will see a massive reduction in manpower,” he wrote. He cautioned that this could lead to the “end of the middle class” and disrupt India’s consumption-driven economy. While acknowledging that major IT firms like Infosys might adapt and grow, Paul emphasized that they would employ far fewer people than they do today. He also criticized corporations for prioritizing AI-driven cost-cutting without considering the broader economic consequences. “All corporates are happy that AI will reduce manpower and improve efficiency, but they forget that without jobs and consumer spending, there will be no topline growth,” he warned. Mixed Reactions on LinkedIn Paul’s post has sparked a lively debate, garnering over 700 likes and numerous comments. Some professionals echoed his concerns, with one user stating, “Automation will eliminate repetitive, low-skill jobs first, replacing them with scalable, high-quality outputs.” Others, however, offered a more optimistic view, arguing that AI could create new opportunities in research-driven sectors. A commenter pointed out, “Every major technological shift, from the Industrial Revolution to the rise of IT, has both displaced and created jobs. The challenge is whether we’re creating new opportunities fast enough.” Another user raised a critical question: “If AI keeps replacing human workers, won’t that lead to reduced spending power and fewer customers for businesses? It’s a vicious cycle.” The Path Forward Paul’s warning underscores the urgent need for India to rethink its economic strategies. With AI reshaping industries globally, experts stress the importance of policies that promote workforce adaptability and job creation in emerging sectors. As the debate continues, one thing is clear: the rapid rise of AI demands proactive measures to safeguard India’s middle class and ensure sustainable economic growth.