Against a backdrop of concern over the impact of artificial intelligence (AI) on employment, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta has said that AI adoption is expected to have a net positive effect on employment. However, she said there will be a churn as some jobs get lost, and managing transition to the new technology is the real policy challenge. 

RBI Deputy Governor said that the RBI’s recent survey on AI impact on productivity and employment indicated that there is no negative effect as of now. She said certainly on the productivity side, survey shows good numbers to high numbers. On employment, she noted that while the evidence is or even hypothetically is difficult to talk about, but whatever surveys have been done, whether internationally or domestically in India, as of today is showing a net positive effect. 

She further said as with any new technology, there is a churning that happens, and stressing that the net employment effect because of AI has so far been positive. She said 'the churning is if some people lose jobs and others gain. And so then the challenge lies in transition'. She added that the skills and labour markets will have to transition towards the faster growing segments.