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The Economic Survey 2025-26 warned of uncertainties in the implementation and usage of the artificial intelligence (AI) in India attempts to solve the impact of AI on its labour population.
"Early evidence has also begun to temper some of the more extreme predictions surrounding AI’s near-term labour impact. A study conducted by Yale’s Budget Lab indicates that the broader labour market in the United States has not experienced a discernible disruption due to AI," the Economic Survey said.
"Similarly, a study by Brynjolfsson, Chandar, and Chen (2025) highlights that the difference in job prospects between occupations highly exposed to AI and those with relatively low exposure is minor. According to Renault (2025), most Danish workers also benefit from the adoption of AI," it added.
The survey said that the emerging evidence does provides some reassurance in the near term, especially for labour-abundant economies such as India. But this should not lead to complacency. And it warned of uncertainties revolving around AI's impact in the Indian labour scenario.
"This does not invite complacency, especially from a policymaker’s perspective. While labour may be complemented in the near term as organisations work to incorporate AI into their tasks, productivity gains from augmentation have a ceiling," the economic survey said.
"All in all, caution is still warranted as India attempts to solve the puzzle of AI and labour. This represents one of the most considerable looming uncertainties about the technology," it added.
"Early evidence has also begun to temper some of the more extreme predictions surrounding AI’s near-term labour impact. A study conducted by Yale’s Budget Lab indicates that the broader labour market in the United States has not experienced a discernible disruption due to AI," the Economic Survey said.
"Similarly, a study by Brynjolfsson, Chandar, and Chen (2025) highlights that the difference in job prospects between occupations highly exposed to AI and those with relatively low exposure is minor. According to Renault (2025), most Danish workers also benefit from the adoption of AI," it added.
The survey said that the emerging evidence does provides some reassurance in the near term, especially for labour-abundant economies such as India. But this should not lead to complacency. And it warned of uncertainties revolving around AI's impact in the Indian labour scenario.
"This does not invite complacency, especially from a policymaker’s perspective. While labour may be complemented in the near term as organisations work to incorporate AI into their tasks, productivity gains from augmentation have a ceiling," the economic survey said.
"All in all, caution is still warranted as India attempts to solve the puzzle of AI and labour. This represents one of the most considerable looming uncertainties about the technology," it added.
