Ex-RBI governor Raghuram Rajan says AI will disrupt India’s services sector, but large-scale displacement unlikely

Raghuram Rajan, the former Governor of the Reserve Bank of India, has weighed in on the potential impact of artificial intelligence (AI) on India’s services sector. He acknowledges that while AI is poised to disrupt the software industry, concerns over widespread job displacement may be exaggerated. Rajan argues that the evolution of technology will not lead to a sudden loss of employment, but rather a gradual transition that may also create new opportunities in various service-related fields. His insights highlight the need for adaptability and preparation within the workforce to harness the benefits of AI, while mitigating its challenges. As the landscape of the services sector evolves, Rajan emphasizes the importance of focusing on reskilling and upskilling initiatives to ensure that workers can thrive in an AI-enhanced economy.