'AI could replace CEOs': Shankar Sharma cautions IT sector to face reality

While the ace investor acknowledged that AI is still in its nascent stage, it is here like a 'foreign hand' conspiracy theory that has plans to 'snatch food away' from Indian youth's table

Investor and founder of artificial intelligence (AI) company Gquant, Shankar Sharma, on Wednesday warned the Indian workforce, particularly in the IT sector, about the growing influence of AI. He cautioned that AI poses a disruptive threat to the future of the IT sector, which he said has long been a cornerstone in shaping India’s modern identity.

 

“The IT sector is the sole reason why we can hold our heads up in the world. Because it is this revolution that started in the early 90s that has been the brand ambassador for today’s India,” Sharma told Moneycontrol. However, he warned that this “Camelot has got its Mordred.” 

 

While the ace investor acknowledged that AI is still in its nascent stage, equivalent to the earliest PC processors, it is here like a “foreign hand’ conspiracy theory that has plans to “snatch food away from Indian youth’s table.”

 

Sharma highlighted that nearly 60 per cent of the Indian economy relies on services, that penetrate deep into their lives: from IT, legal to advertising and media. Warning about this dependency, he urged the people to face the reality that AI will be able to outperform humans in every aspect of these sectors, potentially even surpassing CEOs. 

 

Too much has been written, said and marketed about India's demographic dividend, he said, adding that the younger population’s perceived value and indispensability are overstated. “All it takes is $29.95 a month to morph them into Demographic Debt. Or Demographic Dust,” he said.

Which jobs will be most hurt due to AI?

Many industry leaders have expressed optimism about integration of AI with the Indian job market, noting that it has potential to create millions of new jobs. 

 

According to a new research by ServiceNow, the Indian workforce is set to increase from 423.73 million in 2023 to 457.62 million by 2027, driven by the retail sector. This means that for employment opportunities such as software application development and data engineering, there will be new avenues. However, experts have repeatedly cautioned that the new avenues will be open to those who are ready to upgrade their skills to meet the demands of an AI-driven economy.

 

The report also highlighted that AI is also set to impact many roles within the sector, particularly those involving repetitive tasks. In September, Deloitte South Asia CEO Romal Shetty had said that while AI will create new jobs, it will replace those focused on automation and routine work. Jobs like customer service, in which AI can outperform humans due to its ability to converse in multiple languages, will also be hit by this technology.

 

According to a report by Deloitte India and Nasscom, the AI market in India is expected to grow at 25-35 per cent by 2027, creating demand for AI-related professionals. In July, hiring platform foundit reported that enrollment in AI and machine learning courses online has surged by 50 per cent over the past one year, reflecting professionals' growing desire to adapt to evolving industry trends.