There is a new digital divide unfolding in India - between those who use AI to their advantage and those it leaves behind.

"It is very clear that in terms of jobs which are routine work, definitely displacement will happen, and roles which are not at the foundational level - the expert or technical roles, augmentation will happen there," Abhilasha Gaur, CEO, SSC NASSCOM, told The Secretariat.

This means AI is likely to boost productivity for tasks that require specialised knowledge, while tasks that are routine and repetitive are susceptible to being automated.

"What we are getting is around 2 million people who have been skilled in AI, and almost 100,000 plus in advanced AI as of date. Almost 85% of tech service providers have agentic AI platforms as of date," Gaur said. 

The figures indicate that AI is gaining momentum in the technology industry in India. Agentic AI is a term used for AI systems that can execute tasks, make decisions, and take actions, even if they are minor, in a way that requires little or no involvement from humans. 

The world is witnessing a transformation in the way work is done across sectors. But policymakers and industry experts in India have expressed concern that AI could create inequalities.

Atul Tiwari, former Secretary, Ministry of Skill Development and Entrepreneurship, pointed to the need for AI utilisation across a broad spectrum of people and companies, not just a privileged few. "We need to have an inclusive AI ecosystem, so they don't leave behind ethics, trust, and responsible AI is there."

New Faultlines

The digital divide has typically been assessed through the availability of smartphones, the internet, and digital services for years. On this front, India appears to have done well. Access to data is affordable and digital infrastructure has grown, helping bring millions online.

But new faultlines are starting to develop. 

"India's paradox remains. We have more than 62% of young working age population, and only 5% formally skilled," Tiwari said.

Gaur pointed out how AI is ushering in an era where experience alone may not give an edge. "A 22-year-old who is graduating or a 42-year-old who already has corporate experience of more than 20 years - we are both learning the technology at the same time."

Being able to learn AI and continually reskill may be one of the most critical drivers of career success in the future.

While access to AI seems to be present in major cities, many smaller towns and rural users are still constrained by connectivity and device capability. 

Language is also an issue since AI resources are heavily skewed in favour of English speakers. Most AI models in the world have been developed from English content on the internet, while Chinese companies have huge amounts of data in Mandarin. But India, with 22 languages and hundreds of dialects, is yet to have its own AI models in native languages. 

The disparity shows in the education sector. While some schools have abundant resources to use AI in their learning, others remain without the most basic digital equipment. 

Experts say the divide is visible between men and women too. Gender economist Mitali Nikore, who is also the Founder of Nikore Associates, said, “Even today, only 60% of women have a phone. Of that, only 30% have a smartphone. How will you learn to navigate AI if you're not learning to navigate a smartphone?”

AI In Businesses

AI has applications in health, such as the diagnosis of diseases, medical imaging, and drug discovery. It is utilised in the finance industry for fraud detection, risk assessment, and customer support. 

Manufacturers use it to inform predictive maintenance and quality control, and retailers to make personalised suggestions and optimise stock management. AI can automate warehouses and supply chains in logistics.

But can small businesses reap the rewards of these advances? 

If it takes highly complex algorithms and talented people to use sophisticated AI tools, it can leave behind smaller businesses and those with weaker job skills.

While a small organisation with 10 people may be able to afford AI-integrated tools like Canva Pro costing roughly ₹3,999 per year, a Microsoft Copilot Pro is priced much higher at around ₹26,995 per year. 

According to Sachin Tayal, Managing Director of Protiviti India, India should not copy-paste AI solutions from other countries, but create solutions specific to industries and the needs of the country.

"India has to actually take a leap in building these Small Language Models (SLMs) because India is the most diverse when it comes to data availability. India is the most diverse when it comes to language, cultural habits, and also the kind of tech powerhouse we have," Tayal said.

The diversity of India offers a remarkable opportunity to create AI applications in various sectors, especially healthcare, agriculture, manufacturing, and financial services, he argued. 

Tiwari said the workforce needs to prepare for the shift with the involvement of both the government and the industry. "We have to have industry as a co-architect, not a mere consumer."