Why in NEWS
The Indian IT sector, valued at USD 280 billion and employing 5.8 million people, is undergoing a transformation as Artificial Intelligence (AI) changes service delivery and business operations. Recent disruptions, such as TCS halting experienced hiring and cutting 12,000 jobs, have raised concerns about workforce evolution and future IT employment.
Key Concepts & Terms
| Term | Definition | Example / Note |
|---|---|---|
| AI in IT | Application of Artificial Intelligence to automate tasks, improve productivity, and enhance decision-making in IT services | GitHub Copilot for coding assistance |
| Robotic Process Automation (RPA) | AI-based automation of repetitive, rule-based tasks | UiPath automates back-office operations |
| Generative AI | AI capable of creating content, code, or solutions autonomously | Predicts up to 50% global work automation by 2030–2060 (McKinsey) |
| Predictive Maintenance | AI-driven forecasting of system failures | Splunk predicts IT system issues before failure |
| Digital Personal Data Protection Act (DPDP), 2023 | India’s framework for data privacy | Unclear applicability for AI model training |
| Explainable AI (XAI) | AI systems whose decision-making processes are transparent | Builds trust with clients and regulators |
Key Applications of AI in the IT Sector
| Area | Application | Example |
|---|---|---|
| Productivity & Workforce Transformation | AI tools improve software development efficiency; automate routine IT tasks | GitHub Copilot, UiPath |
| Cybersecurity | Real-time threat detection and faster response | Darktrace Enterprise Immune System flags unusual network activity |
| Data Management | Automates collection, storage, and analysis of large datasets | CRM systems analyzing customer behavior |
| Predictive Maintenance | Forecasts hardware/software failures | Splunk monitors system performance to reduce downtime |
Key Challenges in AI Adoption
| Challenge | Explanation | Example / Data |
|---|---|---|
| Skill Gap & Workforce Displacement | Rapid AI adoption requires reskilling; routine jobs at risk | WEF: AI may displace 85 million jobs by 2025 |
| Regulatory, Ethical & Security Concerns | Ensuring transparency, bias mitigation, and GDPR compliance | DPDP Act, 2023; ethical audits required |
| Legacy System Integration | Outdated infrastructure makes AI adoption costly and complex | Requires overhauling IT architectures |
| Global Competition & Infrastructure Gaps | Competing with AI-ready nations; limited high-performance computing | IndiaAI Mission aims to strengthen infrastructure |
Strategies to Harness AI Effectively
| Strategy | Approach | Example / Initiative |
|---|---|---|
| Government-Industry Collaboration & Reskilling | Build AI computing infrastructure, facilitate access to datasets, nationwide AI skilling | AIKosh platform under IndiaAI Mission |
| AI-Led Product Innovation | Move from service-based model to AI-powered enterprise solutions | Ola’s AI venture Krutrim developing cloud platform |
| Promote AI Research through PPP | Fund deep-tech AI startups and develop specialized AI hubs | Rs 10,000 crore allocation under Fund of Funds scheme |
| Ethical & Explainable AI | Set AI ethics, data privacy, and bias mitigation standards | Encourage Explainable AI (XAI) adoption globally |
In a nutshell
AI is a catalyst for transformation, not a threat. The Indian IT sector must pivot from manpower-intensive outsourcing to knowledge-driven AI innovation. Workforce reskilling, ethical adoption, and AI-led product development will define India’s technological leadership.
Prelims Questions
- Which of the following tools is used for AI-driven robotic process automation in IT?
a) GitHub Copilot
b) UiPath
c) Splunk
d) Darktrace - The DPDP Act, 2023 in India primarily focuses on:
a) AI development standards
b) Data privacy and protection
c) IT infrastructure funding
d) Cloud computing policy - According to McKinsey, generative AI could automate approximately what percentage of global work activities by 2030–2060?
a) 25%
b) 50%
c) 75%
d) 85%
Mains Questions
- Discuss the key applications and challenges of AI adoption in the Indian IT sector and suggest strategies to enhance its potential. 10 Marks
- Evaluate the role of government-industry collaboration in shaping AI-led innovation in India’s IT sector. 10 Marks
Prelims Answers & Explanations
| Q.No | Answer | Explanation |
|---|---|---|
| 1 | b) UiPath | UiPath is a leading RPA tool automating repetitive IT tasks. |
| 2 | b) Data privacy and protection | The DPDP Act, 2023 provides a legal framework for data privacy in India. |
| 3 | b) 50% | McKinsey predicts generative AI could automate about 50% of global work activities between 2030 and 2060. |
