World Bank MD on impact of AI on India's job market

World Bank Managing Director and Chief Knowledge Officer Paschal Donohoe discussed the potential impact of artificial intelligence (AI) on India's job market during a visit to the country. Donohoe, a former Irish finance minister, believes AI could help India boost productivity, create jobs, and improve living standards.

Despite ongoing energy and supply-chain shocks, the global economy has shown resilience with steady growth and job creation in many regions. This resilience is a result of the reforms implemented by national economies, according to Donohoe. The World Bank Group's role is not just to diagnose problems but also to assist economies in building resilience and managing economic shocks.

Donohoe highlighted that only 4.5% of existing jobs in developing economies are at risk due to AI, compared to 14.2% in high-income countries. He emphasized that the World Bank focuses on jobs as the central element of its policy mandate, particularly for young people entering the labor market.

The bank identified five sectors where job growth is expected to continue despite AI expansion: manufacturing, healthcare, tourism, farming, and food. These sectors are considered resilient to technological changes while offering significant job-creation potential. The World Development Report acknowledges concerns about job creation and retention but proposes a framework for advance, adopt, and adapt.

India, with its strong digital infrastructure and a young population, has immense potential to leverage AI positively. Localized AI models that incorporate Indian culture, language, and law could prove beneficial. Donohoe cited examples of AI being used by Indian farmers for better crop expertise and pest identification, demonstrating the technology's potential to improve agriculture and livelihoods.