AI could wipe out ’40-50% white-collar’ Indian jobs: Atomberg founder warns about ‘end of the middle class’

Mumbai-based entrepreneur and Atomberg founder Arindam Paul has raised serious concerns over the potential impact of artificial intelligence (AI) on India’s white-collar job market. In a recent LinkedIn post, Paul cautioned that AI advancements could significantly reduce employment opportunities in the IT services and BPO sectors, posing a major threat to the country’s middle class and economic stability.

Paul emphasized that India’s manufacturing sector is not generating enough well-paying jobs to compensate for potential AI-driven job losses. He wrote, “I don’t think most people, including our leaders, understand how big a threat AI could be to our economy. Our manufacturing is nowhere close to where it should be in terms of generating jobs that pay Rs 3-6 lakh per year. Our IT services and BPOs will see a significant reduction in manpower, and in many cases, in their business.”

While acknowledging that leading IT companies like Infosys might adapt and even grow, Paul pointed out that they would employ fewer people than they do today. “Almost 40-50 percent of white-collar jobs that exist today might cease to exist. And that would mean the end of the middle class and the consumption story,” he predicted.

Corporates Prioritizing Profits Over Employment?

Paul also criticized businesses for focusing on AI-driven cost-cutting without considering its broader economic impact. “All corporates today are happy that AI will reduce manpower, increase efficiency, and improve the bottom line. But they forget that without jobs and money in consumers’ hands, there will be no topline,” he warned.

Despite his hopes for continued GDP growth, Paul believes that unless India significantly expands its manufacturing sector, an AI-driven employment crisis is inevitable.

Debate on LinkedIn: Mixed Reactions

Paul’s post, which has received over 700 likes and numerous comments, sparked a heated debate among professionals. One user agreed with his viewpoint, stating, “You’ve stated the inevitable. Unless today’s white-collar jobs are replaced with an AI-driven profile, we are heading towards a crisis.”Another commenter offered a different perspective, arguing that AI’s impact would be limited to certain sectors. “I feel this mostly applies to digital or IT-related jobs. But non-digital and manufacturing roles won’t be impacted as much. In fact, AI might even create new jobs in research-driven sectors.”Some users echoed Paul’s concerns about automation and job losses. “We have a low-skilled, low-productivity workforce that doesn’t understand global competition. Automation will eliminate repetitive, low-skill jobs first and replace them with scalable, high-quality outputs,” one person wrote.

Others took a more optimistic stance, believing that AI, like past technological advancements, would create new job opportunities. “AI will disrupt jobs, but history shows that every major shift—whether the Industrial Revolution or the rise of IT—has both displaced and created jobs. The challenge is whether we’re creating new opportunities fast enough.”

One commenter raised a broader economic concern, stating, “AI has advanced incredibly fast, and its impact on employment is worrying. If AI keeps replacing human workers, won’t that lead to less spending power and, ultimately, fewer customers for businesses? It’s a vicious cycle.”

The rapid advancements in AI have intensified discussions around the future of employment in India. With automation reshaping industries worldwide, experts believe it is crucial for India to develop policies that ensure workforce adaptability and job creation in emerging sectors.