Atomberg Founder Warns AI Could Threaten 40-50% of White-Collar Jobs: How Will AI Impact India?

Atomberg Founder Arindam Paul stirred heated discussion on Linkedin by issuing a warning about the impact of artificial intelligence (AI) on India’s white-collar job market.

Warning that AI could significantly reduce employment in IT services and BPO sectors, Paul wrote on Linkedin, “Almost 40-50% white collar jobs that exist today might cease to exist.” Paul also predicted that this shift could mark the end of India’s middle class and its consumption story.   

“I don’t think most people, including our leaders, still understand how big a threat AI could be to our economy,” added Paul, underscoring the risks that India faces as AI takes over tasks traditionally handled by white-collar workers.

He stated that India’s manufacturing sector is still “nowhere close to where it should be” to provide jobs for the middle class, which would help cushion the impact of shrinking white-collar employment.

Aiming at India's flagship IT and BPO sectors, Paul warned that these sectors will experience a "big reduction in manpower and in many cases in their business." While he believes companies like Infosys "will survive and some might even thrive," he stated, “they won’t be employing nearly as many people as they do.”

Paul expressed hope for continued GDP growth but warned that in the absence of a major expansion in India’s manufacturing sector, an AI-driven job crisis could be inevitable.

How Will AI Impact White Collar Jobs in India?

A survey by IIM Ahmedabad (IIM-A) faculties with industry experts revealed that 60% executives employed with major companies in India feared job losses due to artificial intelligence (AI). While 53% of executives hope AI will create new jobs, the survey showed that employees perceive AI’s impact on job displacement as significant.  

According to the study, 60% of employees believed AI will replace jobs in their sector in the next five years, compared to 48% who think it is already replacing jobs in their industry,  

The survey covering 567 executives, 31 industry leaders and analysing 70,000 AI job listings revealed that employees perceive AI will have a greater impact on jobs displacement in the future, reported TOI.

The survey titled 'Labour-force perception about AI: A study on Indian white-collar workers’ was released by the Indian Institute of Management Ahmedabad (IIM-A) in August 2024.