Amid widespread concerns over the impact of artificial intelligence (AI) on jobs, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta on Friday said that the net effect of the technology on employment is expected to be positive.
Speaking to reporters at the central bank headquarters in Mumbai, Gupta acknowledged that AI adoption would lead to job losses in some areas, but stressed that overall employment gains would outweigh the losses. She said the key challenge would be managing the transition to new technologies.
RBI survey finds no negative impact so far
Gupta said the RBI has recently conducted a survey to assess the impact of AI on productivity and employment. According to the findings, there is currently no negative effect on jobs.
“Certainly on the productivity side, the numbers are good to high,” she said. On employment, she noted that while it is difficult to assess the long-term impact, surveys conducted both internationally and within India show a net positive effect so far.
Job churn inevitable, transition is the key challenge
As with any new technology, AI is expected to cause a “churning” effect in the job market, Gupta said. While some roles may be eliminated, others will be created, resulting in an overall positive employment outcome.
“The churning is if some people lose jobs and others gain. And so then the challenge lies in transition,” she said, adding that skills and labour markets must adapt towards faster-growing segments.
RBI announces compensation for digital fraud victims
Amid a rise in digital fraud cases, the Reserve Bank of India on Thursday announced that banking customers will be eligible for compensation of up to Rs 25,000 for fraudulent transactions.
RBI Governor Sanjay Malhotra said customers would be entitled to compensation even in cases where they had shared a one-time password (OTP) with fraudsters.
Compensation to be paid from DEA fund
Central bank officials clarified that the compensation will be paid from the Rs 85,000-crore Depositor Education and Awareness (DEA) Fund. They added that customers will be eligible for compensation only once in their lifetime, provided no malafide intent is established.
