Economic Survey 2025–26 | Unchecked AI adoption could destabilise India’s workforce

Bengaluru: With the increased adoption of AI, global tech giants are now reducing their workforce, and the Economic Survey warns against the unchecked replacement of the workforce by automation and says this has destabilising effects. It cautions as the country is attempting to solve the puzzle of AI and labour.

It said one of the most urgent responsibilities of an AI Economic Council is to calibrate the pace of AI adoption within the country. A roadmap should be developed by working with private sector firms, outlining crucial details such as the profile of jobs affected, the geographies where displacement will be most concentrated, and the magnitude of jobs that will be both automated and augmented due to AI, the survey noted.

The AI Economic Council must ensure that deployment of ‘Artificial Intelligence’ does not come at the cost of ‘Human Intelligence’. AI is no longer a distant or speculative technology. It is increasingly being adopted, even if in an experimental capacity, in organisations around the world, it said.

Globally, tech companies are reducing their workforce, citing AI, as automation can replace some of the routine tasks. The survey also stresses the need to acquire new skills as they alter the profile and types of jobs people are engaged in.

Nipun Sharma, CEO, TeamLease Degree Apprenticeship, said, as AI adoption accelerates, employability will be shaped less by narrow technical knowledge and more by adaptability, collaboration, judgement, and hands-on capability. "Several high-skill, labour-intensive sectors such as healthcare services, advanced manufacturing, public health, environmental services, and specialised trades already face talent shortages that technology alone cannot address. This is where structured, work-based learning becomes essential, allowing India to build resilient skills aligned to real economic needs while managing the structural risks of the AI transition," Sharma said.

The Survey has also called for the enhancement of transparency, coordination on AI safety issues and conducting training programmes to build awareness. This comes at a time when AI-related fake contents are spreading across social media.

"Safety evaluations conducted in an ongoing and anticipatory manner will help safeguard public interest and foster trust in emerging technologies," it said.