Abstract
Artificial Intelligence (AI) has emerged as one of the most influential technological developments of the twenty-first century. Its increasing integration into production, services, finance, education, healthcare, transportation, communication and public administration is transforming the structure of modern economies. India, with its large working-age population, expanding digital economy and rapidly growing technology sector, is particularly positioned to experience both the opportunities and challenges associated with artificial intelligence. The relationship between AI and employment, however, is complex. While technological advancement may replace certain routine and repetitive tasks, it can simultaneously create new occupations, increase productivity, generate demand for specialised skills and improve economic efficiency. This paper theoretically examines the relationship between artificial intelligence and employment in India. It discusses technological unemployment, skill-biased technological change, human capital theory, productivity effects and labour-market transformation. Particular attention is given to the potential effects of AI on low-skilled, semi-skilled and highly skilled workers. The paper argues that AI should not be understood only as a mechanism of job displacement. Rather, its broader economic impact depends upon the capacity of institutions, firms, educational systems and workers to adapt to technological change. Reskilling, lifelong learning, digital literacy and appropriate public policy are therefore essential for ensuring that AI contributes to inclusive employment and sustainable economic growth.