Impact of AI on Jobs and Employment, Insights from the Anthropic Study

A recent labour market study by Anthropic highlights the growing impact of AI (Artificial Intelligence) on jobs. The study shows that Large Language Models like Claude AI and ChatGPT can perform many workplace tasks, but their actual use in offices is still limited and gradually increasing.

Key Findings of the Anthropic Labour Market Study

A recent Anthropic labour market study reveals key insights into the impact of AI on jobs and employment, showing how automation is reshaping work across sectors, occupations, and demographics.

• AI is increasingly shaping employment, especially in knowledge – based sectors like IT, finance, and management where many tasks involve data processing, analysis, and digital communication.
• A major finding is the gap between AI’s theoretical capability and its real-world use. Large Language Models such as Claude AI could theoretically perform a very large share of tasks in professions like computer science and mathematics, but in practice they are currently used for a much smaller portion of those tasks.
• The study identifies high-exposure occupations where AI can potentially perform a significant share of work. High-risk jobs include computer programmers, customer service staff, financial analysts, and roles in business, engineering, legal, and office administration.
• Sectors relatively insulated from AI disruption include construction, agriculture, protective services, and personal care, as these roles require physical labour and direct human interaction, making them less suitable for automation by AI.
• Researchers developed a new indicator called “observed exposure”, which measures the actual impact of AI on jobs. This measure combines theoretical AI capabilities with real workplace data to determine which job tasks are already being performed with AI tools.
• AI is affecting hiring more than current jobs. Since ChatGPT launched in 2022, companies have slowed or reduced hiring for entry-level roles such as junior developers, graduate analysts, and early-career professionals because AI can now perform many of the tasks these positions previously handled.
• The study indicates that AI exposure is uneven across demographics
  • Women (54.4%) are more likely to work in AI-exposed roles because jobs with higher female participation, like customer service and administrative work, are more automatable.
  • Highly educated workers, especially graduates, are nearly four times more exposed as knowledge-intensive tasks in fields like finance, engineering, and IT can be automated by AI.
  • White and Asian employees are more represented in AI-vulnerable roles, while Hispanic and Black workers are less affected.
  • Slightly older professionals (average 42.9 years) are more at risk because AI impacts established mid-career roles in knowledge-based jobs.

Impact of AI on Jobs and Employment in India 

Although the study mainly focuses on data from the United States, its conclusions carry significant implications for India. AI technologies are rapidly expanding in the Indian market, especially in sectors related to technology services and digital platforms.

• The rapid advancement of Artificial Intelligence could significantly affect India’s IT services sector, as many outsourcing tasks such as data processing, customer support, and compliance monitoring are increasingly being automated.
• Analysts estimate that the spread of AI could erode around 9-12% of the revenues of IT services companies over the next few years, indicating a potential slowdown in growth if companies fail to adapt quickly to the new technological landscape.
• Major IT companies like Tata Consultancy Services, Infosys, and Wipro may face pressure to transform their business models by shifting from routine service delivery to high-value AI-driven solutions.
• The rise of Large Language Models such as ChatGPT and Claude AI could reduce demand for certain entry-level roles in the IT and business process outsourcing sectors.
  • For example, Entry into high-exposure occupations among workers aged 22 to 25 has fallen 14% since late 2022.
• India’s workforce may face challenges in adapting to the AI-driven economy due to gaps in advanced mathematical, scientific, and digital skills.
• Lower investment in research and development compared with countries like the United States and China may limit India’s ability to compete in the global AI ecosystem.

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Government Initiatives for Impact of AI on Jobs and Employment

Key government initiatives to prepare India’s workforce for AI impact:

• FutureSkills PRIME: Upskilling platform focusing on emerging technologies, including AI and robotics.
• SOAR (Skilling for AI Readiness) Initiative: Training programs to make workers AI-ready across sectors.
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY 4.0): Skill development scheme incorporating digital and AI-related skills.
• Skill India Digital Hub: Online platform for AI and digital skill training and certification.
• NITI Aayog’s Roadmap for Job Creation in the AI Economy: Strategic framework to promote AI-led employment opportunities.
• National Strategy for Artificial Intelligence (2018): Policy guiding AI research, innovation, and workforce preparedness.

Wayforward 

Measures to make employment resilient against AI impact:

• Integrate AI literacy in education: Teach data, algorithms, and AI ethics from early schooling to prepare future workforce.
• National reskilling programs: Provide training and incentives for upskilling workers in AI-adjacent fields like prompt engineering, data annotation, and robotics maintenance.
• Promote human-AI collaboration (cobotics): Use AI to assist rather than replace humans, enhancing productivity while retaining jobs.
• Protect apprenticeship and entry-level opportunities: Create safe work environments where junior employees learn alongside AI without being deskilled.
• Support MSMEs in cyber-resilience: Offer subsidized AI-based security tools to prevent intellectual property loss and job erosion.

Implement portable social security: Ensure gig and platform workers retain pensions, health benefits, and insurance as AI changes job structures.