India's Demographic Dividend: An AI-Driven Doomsday Scenario?
India's economic aspirations have long rested on its demographic dividend – a young, burgeoning workforce. However, a new Bernstein analysis paints a concerning picture. Rapid AI advancements threaten to undermine this advantage, potentially creating a 'doomsday scenario'. The $350 billion services export sector, employing over 10 million, is at risk, with AI systems capable of performing tasks with higher precision and speed at a fraction of the cost of human labor. This threat extends to both high-end IT services and low-skill jobs. Despite leading in AI skills penetration, India's lack of domestic technological innovation and reliance on Western platforms leaves it vulnerable. The demographic dividend, once a promise of prosperity, could become a burden if sufficient quality jobs aren't created.