Jobs Vs Machines - Part 2: Collaborative strategies to mitigate AI-driven job displacement

Mitigating the impact of AI-driven job displacement requires collaborative efforts from governments and the tech industry. They include investing in education programmes, fostering collaboration for solutions, implementing robust reskilling initiatives, emphasizing diversity and inclusion, etc.

Tarun Nazar, Co-Founder & CEO, Neokred, feels that in order to mitigate AI-driven job displacement, Indian governments and the tech industry must collaborate on comprehensive upskilling initiatives.

Nazar adds that investment in educational programmes that focus on digital skills can future-proof the workforce. Simultaneously, he adds, policy frameworks should incentivize innovation while protecting those in transitioning roles.

“The creation of ‘AI Safety Nets’ in the form of retraining grants and job-matching for affected workers will be essential. Through such proactive measures, India can transform AI challenges into opportunities for economic growth and enhanced employment, ensuring the workforce remains agile and adaptable in the face of AI advancements,” he says.

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Governments and the tech industry must collaborate on comprehensive strategies to mitigate the impact of AI-driven job displacement, says Kajal Malik, Co-founder and CBO, PickMyWork. Notably, she adds, implementing policies that promote ethical AI development and ensure transparency is crucial. “Establishing robust workforce retraining programmes, supported by both public and private sectors, will aid in upskilling workers for evolving job roles. Importantly, governments need to proactively enact and enforce policies that protect workers’ rights, ensuring a fair and equitable transition in the face of technological changes,” she adds.

According to Amandeep Kaur, Founder & CEO, Phoenix TalentX Branding, in order to mitigate the impact of AI-driven job displacement, governments and the tech industry can take several steps to mitigate the impact of AI-driven job displacement. They are:

• Invest in AI education and training: Establish robust education and training programs to equip the workforce with the skills needed in the AI-driven economy. This includes promoting STEM education and offering re-training initiatives.
• Foster collaboration: Encourage collaboration between governments, educational institutions, and industries to identify emerging skill demands and tailor educational programs accordingly.
• Social safety nets: Develop and strengthen social safety nets to support workers during transitional periods, offering unemployment benefits, job placement services, and other forms of assistance.
• Ethical AI deployment: Ensure the ethical and responsible deployment of AI technologies to minimize negative consequences on employment.

“Mandate companies to offer job loss insurance at work similar to how employers provide for health insurance; this will minimise the impact on employees and their families. The government will have to give subsidies to employers doing so and also invite more insurance companies to offer this type of insurance,” she adds.

Yantra founder-CEO Vikram Bhandari agrees that job displacement is a multifaceted issue that requires collaboration from the government, the private sector, the tech industry, and job seekers. According to him, there is no one-size-fits-all solution, emphasizing the need for an open dialogue between the government and the industry to ensure a balanced approach.

Bhandari feels that the government assumes a crucial role in minimizing the impact of AI.

“Employing the right strategies and policies can significantly support businesses in adapting to change and enforcing regulations that promote ethical AI adoption, thereby mitigating the negative impact on jobs and society. Government incentives, when directed towards supporting businesses to invest in employee training and development programmes, can assist the existing workforce in adapting to changing roles and reduce disruption caused by AI. Simultaneously, the tech industry must cooperate and collaborate with the government sector, finding ways to use, adapt, and promote ethical AI. Alignment between these stakeholders is essential for addressing the complexities of job displacement effectively. Corporates, internally also need to add training, upskilling and reskilling programmes for their employees to be able to support the workforce for any AI-driven job displacement,” he adds.

According to Sumit, CEO and Co-founder, DashLoc, governments and the tech sector need to work together to reduce the loss of jobs due to AI.

“Governments ought to spend money on strong educational programmes that emphasize the development of tech skills from primary through higher school. Worker transitions into AI-related roles can be facilitated by policies that encourage retraining and upskilling initiatives. To make sure that educational institutions are in line with industrial needs, the tech sector should aggressively pursue collaborations with them. Governments can encourage companies to develop new job sectors by providing subsidies or tax cuts. Policymakers, business executives, and educators must have constant communication in order to anticipate changing skill needs and build a resilient workforce that will prosper in the age of AI-driven innovations,” he says.

Employment trends

In the broader context of big-tech companies embracing AI technologies, what are the potential long-term consequences for employment trends, and how should workers adapt (re-skilling, upskilling, etc.) to the evolving landscape of the industry?

As big-tech firms increasingly integrate AI, the ripple effects on employment will likely see a shift from manual to more strategic roles, says Tarun Nazar. Workers must pivot, embracing lifelong learning as a staple of their careers. Upskilling in AI literacy and complementary soft skills such as problem-solving and critical thinking are vital. Industries should facilitate this transition, providing training and clear pathways to new opportunities. Such adaptability ensures that the workforce evolves alongside emerging technologies, turning potential job market disruptions into avenues for career development and innovation in the digital age.

Big-tech companies embracing AI may lead to a shift in employment trends, with increased demand for skills in AI development, data science, and cybersecurity, says Kajal Malik. “Workers should focus on continuous learning, engaging in re-skilling and upskilling programs to align themselves with the evolving needs of the industry. Developing a multidisciplinary skill set that combines technical expertise with creativity, problem-solving, leadership, team management and adaptability can enhance resilience in the face of technological advancements.”

In the broader context, says Vikram Bhandari, potential long-term consequences could manifest as both positive and negative outcomes.

“On one hand, AI is exerting a transformative impact on the employment market, creating new opportunities. On the other hand, it has the potential to disrupt existing jobs, skills, and business models, giving rise to ethical and social challenges. The adaptability of workers depends on multiple factors such as their current roles, skill set, access to training and education, career goals, and their willingness to learn, relearn, and adapt to the changing times. Success in an AI-driven economy necessitates both reskilling and upskilling. Through reskilling, workers can transition to emerging career prospects, thereby enhancing their employability. Upskilling empowers workers to assume higher-value roles, leverage new technologies for improved productivity, enhance creativity, and add efficiency to existing functions. The infusion of a human touch, particularly through the enhancement of soft skills, becomes crucial for the workforce to compete in an AI-dominated job market. Workers who can understand and relate to their clients and customers are more likely to succeed in this evolving landscape. This strategic approach to skill development is important for individuals and organizations alike to face the challenges and opportunities presented by the ongoing technological transformation,” says Bhandari.