AI has a positive net impact on jobs, but adjusting to new technology is difficult: RBI

AI Will Create More Jobs Than It Replaces, Says RBI Deputy Governor Poonam Gupta

Amid growing concerns that artificial intelligence could replace millions of workers, Reserve Bank of India (RBI) Deputy Governor Poonam Gupta on Friday said the overall impact of AI on employment is expected to be positive.

However, she cautioned that the transition will not be smooth, as some jobs will disappear while new roles emerge.

“There will be a churn,” Gupta told reporters at the RBI headquarters, explaining that while certain positions may be lost, others will be created as technology adoption increases.

The central bank recently conducted a survey to assess AI’s impact on productivity and jobs. According to Gupta, the findings show encouraging results.

“Certainly on the productivity side, it shows good numbers to high numbers,” she said.

On employment, she noted that while long-term predictions remain complex, current evidence does not suggest harm.

“Whatever surveys have been done, whether internationally or domestically in India, as of today are showing a net positive effect,” she added.

Gupta emphasized that such disruption is common whenever new technologies are introduced. The key challenge, she said, lies in helping workers adapt.

“The churning is if some people lose jobs and others gain. And so then the challenge lies in transition,” she explained.

She stressed the need for skills development and reskilling initiatives so that workers can move toward faster-growing sectors where AI creates new opportunities.

Her remarks come at a time when fears of automation-led job losses are intensifying globally. However, the RBI’s assessment suggests that AI may ultimately boost productivity and generate more employment than it displaces — provided the workforce is prepared for the shift.