PYQ Relevance:[UPSC 2023] Introduce the concept of Artificial Intelligence (AI). How does Al help clinical diagnosis? Do you perceive any threat to privacy of the individual in the use of Al in healthcare? Linkage: Artificial Intelligence (AI) simulates human intelligence to perform tasks like analysis, prediction, and decision-making, and in healthcare, it aids clinical diagnosis through rapid image interpretation, predictive analytics, and early disease detection. Linking to India’s evolving IT sector, AI’s role in data management and compliance can ensure safe healthcare adoption, but risks such as data breaches, misuse of personal health records, and algorithmic bias highlight the need for strong privacy safeguards and ethical standards. |
Introduction:
The Indian IT industry, valued at $280 billion and employing over 5.8 million people, has been the backbone of India’s digital economy for decades. However, the rise of AI is reshaping business models, altering talent requirements, and compelling firms to rethink their role in the global technology ecosystem. Far from being a simple “job killer,” AI is redefining the industry’s competitive advantage.
Why is the IT Industry in Restructuring Mode?
- Beyond the “AI kills jobs” narrative:
- The shake-up is not merely about replacing human workers with AI, but about re-engineering processes for efficiency and scale.
- AI is driving transformation across the entire software lifecycle — from coding to testing and maintenance.
- The TCS trigger:
- TCS’s freeze on experienced hires and planned removal of 12,000 employees has been interpreted as a signal to markets, clients, and employees:
- Markets: Cost optimisation and forward-looking adaptation.
- Clients: AI-powered efficiency.
- Employees: Need for continuous upskilling.
Why is AI Gaining Momentum Now?
- Cost-optimisation as a driver:
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- AI-led productivity boosts (30%+) are critical in a cost-sensitive, investor-driven market.
- Examples: AI-powered coding assistants, intelligent debuggers, automated testing.
- Investment surge:
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- In 2025, $1 trillion+ expected global spending on AI infrastructure, training, and applications.
Impact on Jobs and Skills
- Job contraction in some areas:
- Automation, low-code platforms, and AI reduce the need for large teams in certain roles.
- Example: U.S. firms openly using workforce attrition to streamline operations.
- Skills that remain resilient:
- Core coding in C++ (OS, gaming, security systems), robotics, embedded systems.
- High-value areas: product management, UI/UX, tech architecture.
- Traits that will rule: math skills, imagination, problem-solving.
Opportunity for India’s IT Sector
- Addressing global AI adoption barriers:
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- Legacy systems, poor data quality, and compliance requirements are major bottlenecks abroad.
- Indian firms can: Modernise systems, Organise and clean data and Build compliant AI solutions (aligning with laws like EU’s AI Act).
- Moving from “back office” to “AI innovation partners”:
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- Future advantage lies with small, lean AI-native teams solving complex domain-specific problems (healthcare, defence, fintech, sustainability, education).
From Scale to Specialisation:
- The traditional “IT park with thousands of coders” model is declining.
- A 50-member AI-focused team can outperform a 5,000-member legacy services team.
- Requires cultural shift in Indian IT firms from scale efficiency to innovation agility.
Conclusion:
AI is not the end of India’s IT story, but a call for reinvention. By leveraging its talent pool, improving innovation culture, and addressing global AI adoption barriers, India can position itself not just as a participant but as a shaper of the AI era. The challenge lies in embracing the shift from large-scale coding work to lean, high-value, AI-driven problem solving.
Value Addition: |
Thinkers & Scholars on AI:Andrej Karpathy
V. Balakrishnan
Extra Mile:AI Capitalism – Concept: It refers to an economic and social order where artificial intelligence technologies become a core driver of capital accumulation, market power, and social influence. In this system, AI is not just a tool but a means of consolidating wealth and control in the hands of a few global tech giants, venture capital firms, and AI infrastructure providers. Scholars and Thinkers
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Mapping Micro-themes:
| GS PAPER II | Governance in technology adoption, regulation, Tech policy & regulation, India as a global technology partner:
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| GS PAPER III | Economic growth, employment (AI & automation impact on employment ), AI innovation ecosystem (Innovation-driven economy), Start-up ecosystem in AI
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| GS PAPER IV | Ethical AI (fairness, transparency, bias mitigation)
Examples:
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Practice Mains Question
- Discuss how Artificial Intelligence is reshaping India’s information technology sector. In your answer, highlight both the challenges and opportunities this transition presents. (250 words)
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