Will AI Take Away Jobs? PM Modi’s Key Remarks on Future Challenges

Concerns over whether Artificial Intelligence (AI) will displace jobs have gained momentum, especially after Prime Minister Narendra Modi recently addressed future challenges in the sector. Despite allocating ₹2,000 crore for the AI Mission, only ₹800 crore was utilized, leading to a reduction in funding this year. Given this situation, questions arise about India’s position in the global AI race.

The world’s first AI Safety Summit was held at Bletchley Park in the United Kingdom. The venue was symbolic, as it was where Alan Turing—considered the father of modern computing—developed code-breaking systems that played a crucial role in defeating Germany during World War II. Turing’s life, however, ended tragically after he faced persecution for revealing his homosexuality. In recent years, the British monarchy formally apologized and honored him posthumously. Hosting the AI summit at his birthplace was seen as a tribute.

Subsequently, AI conferences were held in France and South Korea. The fourth such conference was inaugurated in New Delhi by Prime Minister Modi, marking the first time the event was hosted in a developing country. Like the G20 summit two years ago, the capital was once again prepared to welcome global technology leaders and dignitaries.

Such conferences offer India an opportunity to showcase its contributions and accelerate research. The Prime Minister expressed confidence that India would emerge as a global leader in AI. While this optimism is welcome, it is essential to assess the current reality.

India’s investment in Research and Development (R&D) remains modest. According to recent data, only 17 Indian companies feature among the world’s top 2,000 companies investing significantly in R&D. India spends merely 0.7% of its GDP on R&D. In contrast, China spends 2.7%, while the United States spends 3.5%. Recently, Chinese tech giant Huawei alone invested $23 billion in R&D in a single year—more than the combined R&D spending of all Indian companies.

India’s pace in AI development has been slow. Despite announcing the AI Mission last year with a ₹2,000 crore allocation, only ₹800 crore was utilized, prompting a funding cut of ₹1,000 crore this year. If allocated funds remain unspent, the finance ministry can hardly be blamed for reducing them. India’s AI strategy has often been reactive. For example, when China introduced its AI platform “DeepSeek,” India was stirred into accelerating its own efforts.

While such efforts are commendable, it is important to understand the larger context. Countries like the UK, France and South Korea hosted AI summits while already conducting substantial research in the field. Yet even they are not considered leaders in AI. Currently, the global leaders are primarily the United States and China.

The United States alone has developed more than 40 AI models. Recently, a relatively small American company, Anthropic, launched an AI product that created global excitement, as it demonstrated AI systems capable of building next-generation AI—signaling a new phase of technological evolution. China has developed around 15 AI models so far. Even Europe has registered three significant AI models. In comparison, India’s position in the field remains modest.

India’s current focus appears to be on establishing large-scale data centers. While these centers can handle enormous volumes of digital transactions and computations, they come at a high cost—not just financially but environmentally. Data centers operate 24/7 and require vast amounts of electricity and water for cooling. Without original innovation, these data centers risk becoming the next version of the Business Process Outsourcing (BPO) model—generating employment but not leading to indigenous technological breakthroughs.

As of today, no globally recognized AI product has been developed by an Indian company. Therefore, it is crucial to ensure that data centers do not become tomorrow’s BPOs.

While celebrating AI summits is necessary, attention must also be paid to fundamental scientific and technological research. On the very day the AI conference was inaugurated, reports emerged of 12 deaths due to contaminated water in Haryana, and fatal infrastructure accidents in Lucknow and Mumbai. These incidents underscore the need for balanced development.

Investment in foundational science and technology must increase. Scientific temperament must be strengthened among citizens. Human intelligence must first mature and expand before artificial intelligence can truly thrive. AI is the next stage—but it cannot replace the groundwork required in education, research and basic infrastructure.