The global labour market is experiencing substantial changes due to the emergence of automation and artificial intelligence (AI). The implementation of automation and AI has brought about a significant transformation in India’s industrial processes and employment market. This article aims to examine the impact of automation and AI on the labour market in India, particularly in terms of job displacement, skill mismatch, income inequality, the growing trend of informality and potential solutions. However, the employment pattern increasingly favours job seekers possessing AI skill sets. The article reveals strategic investments in education, infrastructure and policy reforms are needed to maximise the advantages and minimise the labour market implications of these technologies.
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