Will chatbots eat India’s IT industry?

An employee at the offices of a technology services company.

2024-05-09  923  中等

Business services are critical to India’s economy. The sector employs 5m people, or less than 1% of Indian workers, but contributes 7% of GDP and nearly a quarter of total exports. Simple services such as call centres account for a fifth of those foreign revenues. Three-fifths are generated by IT services such as moving data to the computing cloud. The rest comes from sophisticated processes tailored for individual clients. Capital Economics, a research firm, calculates that an extreme case, in which AI wiped out the industry entirely and the resources were not reallocated, would knock nearly one percentage point off annual GDP growth over the next decade in India. In a likelier scenario of “a slow demise”, the country would grow 0.3-0.4 percentage points less fast.

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