CEA Dr V Anantha Nageswaran calls AI-related stock valuations a "bubble," arguing the hype is driven by companies seeking capital. He says fears of AI-driven job losses are exaggerated and a real assessment can only happen after the bubble bursts.
AI hype driven by companies seeking capital
He argued that much of the current narrative around AI is being shaped by companies seeking capital and convincing investors of the technology's transformative potential. "There is so much of hype because they want to tell the capital contributors, the investors, 'oh my God, this is going to be such a productivity bonanza'," he said.According to the CEA, some companies are presenting AI as a tool that could sharply reduce labour costs and boost profits, creating anxiety among workers and new graduates. "They want to tell the capital owners, you will be rewarded in the process. They have induced a fear in the minds of labour," he said.Uncertain job impact and exaggerated fears
Nageswaran cautioned that meaningful assessments of AI's impact on jobs can only be made after the current wave of market excitement subsides. "A serious conversation about AI's contribution or its threat to the labour market... can happen only after the current bubble is behind us," he said.While acknowledging that AI will affect certain professions and skills, particularly in the technology sector, he said its long-term impact on employment remains uncertain. "It will have an impact on some IT skills, which will not be required anymore, as was the case with all technologies. But whether it will be a massive disruptor in terms of employment, I think that the jury is still out," he said.The CEA added that there is currently "far too much fear and far little information about the AI threat." "It is true it's a lived experience. People are losing their jobs. I don't want to either trivialize it or say it's all hype and labour will not be impacted," he said. "All I'm saying is right now, there is far too much fear and far little information about the AI threat."Pace of adoption may be slower than assumed
Nageswaran also suggested that the pace of AI adoption may be slower than widely assumed, as the cost of AI services could limit how quickly they spread across industries. "The pricing with which AI services are priced may determine how fast it will diffuse. It may give you more time," he said.He said the real opportunities and risks associated with AI would become clearer once the current market frenzy eases, adding, "Only when the bubble bursts, we may be able to have a better sense of where the opportunities and the threats lie." (ANI)(Except for the headline, this story has not been edited by Asianet Newsable English staff and is published from a syndicated feed.)Add Asianet Newsable as a Preferred Source
