Automation Tsunami: How AI Wiped Out 1 Lakh Jobs in 12 Months

Here’s a detailed overview of the topic “AI Effect: 1 Lakh Jobs Lost in a Year” based on current trends and available industry data up to 2025:

🔍 Overview:

The rapid advancement and deployment of Artificial Intelligence (AI) technologies across industries have led to significant job displacement worldwide. In India alone, it is estimated that around 1 lakh (100,000) jobs were lost in the last year due to automation and AI-driven restructuring.
📉 Which Sectors Were Affected Most?

IT & Software Services:

Major Indian IT firms such as Infosys, Wipro, and TCS have cut thousands of jobs.

Routine coding, testing, and back-office roles are increasingly being replaced by AI tools like GitHub Copilot and automated testing suites.

L1 tech support jobs have been heavily affected due to AI chatbots and virtual assistants.

BPO & Customer Support:

AI-based voice bots and chatbots (like those powered by OpenAI or Google Dialogflow) have replaced many customer service agents.

Outsourcing hubs like Hyderabad, Gurugram, and Bengaluru have seen a drop in hiring.

Banking & Financial Services:

Automated KYC, fraud detection, and customer service bots have reduced the need for entry-level staff.

Many private sector banks are using AI-driven loan processing, eliminating clerical roles.

Retail & E-commerce:

Warehouse automation (robots, AI inventory systems) and cashier-less checkouts have replaced many low-skill jobs.

AI-driven product recommendations and marketing have reduced the need for large marketing teams.

🧠 Why Is This Happening?

Cost Efficiency: AI reduces operational costs, improves accuracy, and never “takes a break.”

Productivity Gains: AI systems can analyze huge data sets faster than humans.

COVID-19 Acceleration: The pandemic pushed digital transformation, encouraging companies to embrace automation and AI faster.

📈 AI Tools Leading to Job Cuts:

ChatGPT & Bard: Used in content creation, coding, and customer service.

Automation Anywhere, UiPath: Used in robotic process automation (RPA) to handle repetitive office tasks.

SAP AI & Oracle Cloud AI: Deployed in finance and HR departments.

AI-powered HR tools: Screening resumes and conducting first-round interviews, reducing recruitment teams.

🔄 Which New Jobs Are Being Created?

While some roles are being eliminated, new opportunities are emerging:

AI Prompt Engineers

Data Scientists & ML Engineers

AI Ethics Officers

Cybersecurity Analysts

AI Trainers and Annotators

However, these roles require reskilling and upskilling, which many displaced workers haven’t yet accessed.

🧾 Statements from Experts:

NASSCOM (India’s tech industry body) has acknowledged the job loss but emphasized the need for retraining programs.

McKinsey Global Institute reports that while AI could displace up to 800 million jobs globally by 2030, it will also create new roles, especially in high-tech, education, and healthcare.

📊 Government & Policy Response:

Digital Skilling Programs: Launched by the Ministry of Skill Development and NITI Aayog.

AI task force formed to study its impact and recommend regulations.

Public-private partnerships encouraged for workforce retraining.