Navigating the Challenges of AI Disruption

Artificial Intelligence (AI) is no longer an emerging technology but a force of disruption in sectors. From job automation to enhancing business processes, AI is transforming the way we work, communicate, and do business. This is reflected in the explosive growth of the global AI market size, which is projected to grow to $ 1.81 trillion (equivalent to Rs. 157 lakh crore) by 2030.

However, while organisations and professionals want to shift to this new world powered by AI, they must sort out some of the important issues like disruption of jobs, ethics, security risks, and compliance. In India, where digitisation is happening at a very rapid pace, AI adoption in finance, healthcare, e-commerce, and manufacturing is increasing exponentially. But how do we get the benefits of AI and counter the limitations? Let us discuss some of the core issues of AI disruption and how companies can adapt to them.

The impact of AI on jobs

According to a report by the World Economic Forum, AI will displace 8.5 crore jobs globally by 2025. As AI-driven automation takes over routine and repetitive tasks, several roles across different industries are at risk of becoming obsolete. Many jobs in customer service, data entry, and basic finance operations are already being handled by AI-powered systems. 

However, there’s good news as well! AI will create new roles, too, contributing to the creation of 9.7 crore new jobs in this same time frame. Businesses now are in need of AI auditors, prompt engineers and automation experts. This trend is being seen across industries. For example, in finance and banking, old jobs such as manual loan processing and data entry are fading away, whereas AI-based jobs like AI risk management and fraud detection are on the way up.

The ethical implications of AI

AI systems learn from historical data. If the data contains biases, AI models will produce biased outcomes. This is especially concerning in sensitive sectors like hiring, lending, and law enforcement. Some examples of AI bias in real-life business scenarios are:

• An AI-powered hiring tool used at Amazon back in 2015 de-prioritised resumes that included the word “woman” because they were trained on historical data that favoured male applicants over female candidates.
• A 2019 study conducted in the U.S. reported that a healthcare risk-prediction program, a significant instance of algorithms applied to more than 200 million (equivalent to 20 crore) individuals, showed racial bias due to its dependence on a faulty metric to determine need.

AI and cybersecurity threats

AI is not just utilised for good. 74% of IT professionals claim that their organisations face attacks from cybercriminals who leverage AI tools to cause harm. Research from IBM indicated that the cost of a data breach in 2024 was $ 4.88 million (equivalent to Rs. 42 crores), indicating the quantum of financial harm that AI has the potential to cause.

To fight these threats, businesses can:

• Create or deploy AI-powered cybersecurity tools that can detect and block attacks in real time.
• Educate staff on cyber threats so they can recognise suspicious activities in advance.

The need for AI literacy and workforce upskilling

A Microsoft study discovered that in 2024, 71% of business leaders would hire a less experienced candidate possessing AI expertise over a more experienced candidate who didn’t have the skills. This shows the increasing demand for learning AI in the workforce. However, most professionals are not AI literate, and hence, it is challenging for them to fit into AI-based work environments. Unless they are trained and upskilled, companies might not be able to effectively implement AI. Some of the ways in which companies can enhance AI literacy are:

• Provide AI training courses for employees.
• Incentivise professionals to pursue AI certification courses (e.g., Google AI, IBM AI Foundations).
• Organise AI awareness workshops and seminars.

Balancing AI innovation and human creativity

AI excels at processing data and automating tasks, but it cannot replace human creativity and intuition. Businesses must strike a balance between using AI for efficiency and retaining human ingenuity in key areas like marketing, product design, and leadership. Here’s how this blend of human and AI contribution could look like in various business fields:

Field	Role of AI	Role of humans
Marketing	Analysing consumer behaviour	Creating emotional, brand-driven campaigns
Content Creation	Generating basic content	Adding creativity, storytelling, and originality
Business Strategy	Providing data insights	Strategic decision making

Conclusion

Artificial intelligence is revolutionising businesses, but it requires to be carefully implemented in order for businesses to benefit from the potential it offers. Indian businesses such as NBFCs and online marketplaces are using AI for a wide range of tasks from risk analysis to delivering customer experience. The path to success in an AI world hinges on learning about the risks that it poses and discovering how to work with AI to build a more intelligent and efficient future.