Mumbai founder raises alarm over AI taking away white-collar jobs in India: ‘End of middle class…’ | Trending

Mumbai-based entrepreneur and Atomberg founder Arindam Paul recently sparked a heated discussion on LinkedIn with his views on the impact of artificial intelligence (AI) on India’s white-collar job market. He warned that AI could drastically reduce employment in IT services and BPO sectors, posing a significant challenge to the country’s economy. A Mumbai-based founder cautioned that AI could slash jobs in India.(LinkedIn/Arindam Paul) “Middle class and consumption story at risk”In his LinkedIn post, Paul expressed concern that India’s manufacturing sector is not generating enough well-paying jobs, which could exacerbate the problem. (Also read: IIM grad says he’s stereotyped in India for his looks: ‘Asked if I’m a gym trainer’) “I don’t think most people, including our leaders, understand how big a threat AI could be to our economy. Our manufacturing is nowhere close to where it should be in terms of generating jobs that pay ₹3-6 lakh per year. Our IT services and BPOs will see a significant reduction in manpower, and in many cases, in their business,” he wrote. While he acknowledged that major IT firms like Infosys might adapt and even thrive, he argued that they would no longer employ as many people as they currently do. Paul further predicted, “Almost 40-50 percent of white-collar jobs that ex today might cease to ex. And that would mean the end of the middle class and the consumption story.” Corporates overlooking the bigger picture?Paul also criticised businesses that are enthusiastic about AI-driven cost-cutting but fail to consider its broader economic impact. “All corporates today are happy that AI will reduce manpower, increase efficiency, and improve the bottom line. But they forget that without jobs and money in consumers’ hands, there will be no topline,” he cautioned. While he hoped for continued GDP growth, he warned that unless India significantly expands its manufacturing sector, an AI-driven job crisis is the most probable scenario. Check out the post here: A heated discussion on LinkedInPaul’s post has received over 700 likes and numerous comments, with professionals weighing in on both sides of the debate. One user agreed with him, stating, “You’ve stated the inevitable. Unless today’s white-collar jobs are replaced with an AI-driven profile, we are heading towards a crisis.” Another countered, “I feel this mostly applies to digital or IT-related jobs. But non-digital and manufacturing roles won’t be impacted as much. In fact, AI might even create new jobs in research-driven sectors.” A third user echoed Paul’s concerns, writing, “We have a low-skilled, low-productivity workforce that doesn’t understand global competition. Automation will eliminate repetitive, low-skill jobs first and replace them with scalable, high-quality outputs.” However, some users took a more optimic view. One commented, “AI will disrupt jobs, but hory shows that every major shift—whether the Industrial Revolution or the rise of IT—has both displaced and created jobs. The challenge is whether we’re creating new opportunities fast enough.” (Also read: ‘IITians are insufferable’: Woman’s harsh take on ‘elitism’ sparks fierce online debate) Another raised a broader concern, “AI has advanced incredibly fast, and its impact on employment is worrying. If AI keeps replacing human workers, won’t that lead to less spending power and, ultimately, fewer customers for businesses? It’s a vicious cycle.”