But the next stage of AI development is qualitatively different. "Agentic AI" systems are capable of independently executing complex tasks with minimal human supervision. These threaten to alter the economics of white collar employment itself. The implications extend far beyond the technology sector.

In advanced countries, firms are already slowing recruitment at junior levels. Entry level programming, technical writing, basic legal drafting and standardized analytical work are increasingly being handled by AI-assisted systems

Companies still need experienced professionals to supervise outcome. But the pyramid beneath them is narrowing. That matters to the Indian middle class. It depends not only on elite jobs, but a steady pipeline of entry level employment. Such employment allows young workers to enter the system. Indian economy is particularly exposed in this regard.

Its service economy was built around structured, rule-based and English language tasks that AI performs well. The country's IT-services industry succeeded because it industrialized knowledge work. Artificial intelligence may industrialise it further. But there would be fewer humans required in the chain.

In all, 60 per cent of entry level and repetitive technological jobs are threatened to be displaced by AI use. Major IT firms and outsourcing units are shifting from headcount -based hiring to outcome-based contracts. They are using coding and debugging co-pilots. Generative AI is disrupting Indian Business Processing Outsourcing (BPO)s and customer service. The BPOs employ 1.6 million people

Natural Language Processing (NLP) tools can now automate upto 80 per cent of routine customer queries. Thereby, it reduces the need for human agents. The danger is not immediate mass unemployment .AI systems still suffer from reliability problems. Autonomous decision making remains risky in fields where errors in fields involving high financial, legal or reputational costs. High end computing infrastructure is also expensive.

It limits high scale deployment. The deeper risk lies in the social consequences of a prolonged squeeze on educated salaried workers. India's urban middle class is already burdened by rising housing costs and consumer debts. Shrinking job security will only worsen the situation.

If white collar employment loses the stability it once promised, economic anxiety would sharpen in India's densely populated urban centres. Bengaluru, Hyderabad, Pune and Gurgaon emerged symbols of aspiring India will be the worse hit.

Government has not yet grasped the scale of the transition. Public debate still rates AI as an innovation story. It is yet to be looked upon as a source of structural labour disruption. Technology is threatening to reduce large sections of routine knowledge work. Reskilling alone may not be enough. The AI will undoubtedly create wealth. Yet there remains an unanswered question. Will it also create enough human work? (IPA Service)