‘BPO Jobs Face Potential Threat Due To AI’: Here’s What Chief Economic Advisor Said

New Delhi: Acknowledging the challenges, Artificial Intelligence poses to India's Business Process Outsourcing (BPO) sector, Chief Economic Advisor (CEA) V Anantha Nageswaran on Monday said that the jobs in BPO sector can be under threat which can impact customer services in the long run while AI might play a significant role in that development. 

"The short-term challenge of generative AI could slow BPO sector growth, affecting customer services. It is possible that the jobs related to BPO will be under threat whereas AI may actually turn out to be a booster," CEA Nageswaran said at a press conference.

AI Can Lead to Reduction In Annual Productivity Growth

Nageswaran also highlighted that AI's rise could lead to a decrease in annual productivity growth by around 0.3 percentage points in the foreseeable future. This suggests a potential temporary decline in productivity as industries adjust to the adoption of new technologies.

Long-term Potential of AI is Promising

“The broader adoption of AI could lead to significant improvements in critical areas such as healthcare and education, thereby enhancing human capital,” CEA said. 

Economic Survey Tabled

According to the economic survey presented in Parliament by Finance Minister Nirmala Sitharaman, the Indian economy is projected to achieve a growth rate of 7 percent in the medium term.

“Achieving a sustained growth rate of over 7 per cent will require a tripartite compact between the Union Government, State Governments, and the private sector. India's financial sector is undergoing critical transformations,” the report stated. 

Union Budget is set to be presented by the Government in Parliament on July 23. The Budget Session of Parliament which commenced on Monday (July 22) is likely to conclude on August 12.