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India’s AI-driven tech firings could derail middle class dreams

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Nikhil Inamdar

BBC News, Mumbai

Getty Images The image shows Indian workers at a software company seated in front of their computer screens. A woman wearing a white kurta is prominently seen, surrounded by male colleagues on either side. Getty Images

Companies like TCS rely on cheap skilled labour to produce software for global clients at low costs

India’s showpiece software industry is facing a moment of reckoning.

The country’s biggest private sector employer Tata Consultancy Services (TCS) – also its largest IT services company – has announced it will cut more than 12,000 jobs at middle and senior management levels. This will reduce the firm’s workforce by 2%.

The Mumbai-headquartered software behemoth employs over half-a-million IT workers and is considered a bellwether for business sentiment across India’s $283bn software industry. It forms the backbone of formal, white-collar employment in the country.

The decision, TCS says, was taken to make the company “future ready” as it invests in new areas and deploys artificial intelligence at scale amid seismic disruptions in its traditional business model.

Companies like TCS have, for decades, relied on cheap skilled labour to produce software for global clients at lower costs, but this has been upended by AI automating tasks and clients demanding more innovative solutions, rather than just cost savings on manpower.

“A number of re-skilling and redeployment initiatives have been under way,” TCS said in a statement, adding it will be “releasing associates from the organisation whose deployment may not be feasible”.

“Across IT companies, people managers are being let go while the doers are being kept to rationalise the workforce and bring in efficiencies,” Neeti Sharma, CEO of staffing firm TeamLease Digital told the BBC.

She added that “there’s been a massive spike” in emerging tech hiring in areas such as AI, cloud, data security, but it is not at the same intensity at which people are being fired.

TCS’s announcement also highlights the sharp “skills mismatch” in the country’s software industry, experts say.

As generative AI leads to a rapid enhancement of productivity, “this technology shift is forcing businesses to reassess their workforce structure and analyse if resources should be redirected toward roles that complement AI capabilities,” Rishi Shah, economist with Grant Thornton Bharat told the BBC.

According to the industry body Nasscom, India needs a million AI professionals by 2026, but not even 20% of the country’s IT professionals are AI-skilled.

While up-skilling spends by tech companies have significantly spiked as they rush to prepare a new pool of AI talent for the future, those without the requisite skills are being shown the door.

Getty Images The image is of the Mumbai headquarters of TCS. It is an ornate colonial building in brown stone, with golden plates of TATA and Tata Consultancy Services displayed on either side of the main door. Getty Images

India needs a million AI professionals by 2026 according to one estimate

Besides the structural shifts brought about by the advent of AI, TCS’s announcement also “reflects the broader growth challenges being faced by India’s IT sector”, according to global investment banking firm Jeffries.

“Aggregate net hiring at industry level has been weak since FY22 [financial year 2022], mainly due to the prolonged moderation in demand outlook,” Jeffries said in a note.

Demand for IT services in the US – which contributes to half of the revenue for Indian software majors – has been impacted by Donald Trump’s tariffs.

While tariffs chiefly target physical goods, analysts say companies are pausing on discretionary IT spending as they reconsider the economic impact of tariff uncertainties and their global sourcing strategies.

Rising AI adoption is also driving US companies to negotiate lower costs, forcing people heavy IT firms to work with fewer employees, according to Jeffries.

The ripple effects of this have begun to be felt in cities like Bengaluru, Hyderabad and Pune – once epicentres of India’s IT boom. Some 50,000 people in the industry lost their jobs last year, according to one estimate. And there was a 72% drop in net employee additions at India’s top six IT services companies.

Getty Images Bangalore city aerial view with skyscrapers behind a carpet of green covering, and amber-hued skies. Getty Images

India’s software revolution spawned new boom towns like Bengaluru

All of this could have cascading effects on India’s broader economy, which has struggled to create jobs for the millions of young graduates that enter the workforce every year.

In the absence of a strong manufacturing sector, these software companies – which made India the world’s back office in the 1990s – were the preferred employment option for hundreds of thousands of new IT workers. They birthed a new, affluent middle class, spawning growth in many cities and fueling demand for cars and homes.

But as stable, well-paying jobs shrink, there are now questions over India’s services-led economic boom.

Until just a few years ago, India’s IT majors would absorb 600,000 fresh graduates every year. In the last two years, that number has dramatically fallen to about 150,000, according to TeamLease Digital.

Other emerging sectors such as financial technology startups and GCCs (global capability centres) – which are off-shore units of multinational companies that perform supporting tasks like IT, finance or research and development – are absorbing the rest, but at least “20-25% of fresh graduates will have no jobs,” says Ms Sharma.

She adds that the “GCCs will never match the volume of hiring that the IT companies did”.

Several top business leaders in India have begun flagging the economic consequences of these trends.

India’s trimmed down IT sector could “negatively impact many allied services and industries, crash real estate and give a big blow to premium consumption,” D Muthukrishnan, one of south India’s largest distributor of mutual-funds wrote on X, reacting to TCS’s announcement.

A few months ago Arindam Paul, entrepreneur and founder of the motor technology company Atomberg, warned of the potentially crippling impact of AI on India’s middle class in a LinkedIn post.

“Almost 40-50% white collar jobs that exist today might cease to exist,” Paul wrote. “And that would mean the end of the middle class and the consumption story.”

How quickly Indian tech giants adapt to the gamut of disruptions being brought by the AI revolution will decide whether the country can retain its edge as a global technology player. And whether it can expand its consuming middle-class that can keep its GDP growth on track.

Follow BBC News India on Instagram, YouTube, X and Facebook.





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US health insurance agency to use AI for authorising patient claims; how this may be a problem

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The Centers for Medicare and Medicaid Services (CMS), a federal agency responsible for health insurance services in the US, has announced a new artificial intelligence (AI) based pilot program. A press release issued by the agency states that this AI-powered program will be used to assess the “appropriateness” of certain medical services. According to a report by The New York Times, the program is scheduled to begin in six states by 2026, which will apply prior authorisation to a group of Original Medicare recipients. According to a CMS press release, the AI algorithms will be used to ensure that care recipients are not receiving “wasteful, inappropriate services.” The pilot program aims to target these services in Original Medicare, a process that is already common for those with Medicare Advantage.As per the report, similar AI-based algorithms like these have already faced litigation, adding that the AI companies involved “would have a strong financial incentive to deny claims.” The new pilot has even been described as an “AI death panels” program by the report.

What the agency said about this AI-based program

In the press release, CMS wrote: “The Centers for Medicare & Medicaid Services (CMS) is announcing a new Innovation Center model aimed at helping ensure people with Original Medicare receive safe, effective, and necessary care.Through the Wasteful and Inappropriate Service Reduction (WISeR) Model, CMS will partner with companies specializing in enhanced technologies to test ways to provide an improved and expedited prior authorization process relative to Original Medicare’s existing processes, helping patients and providers avoid unnecessary or inappropriate care and safeguarding federal taxpayer dollars.The WISeR Model will test a new process on whether enhanced technologies, including artificial intelligence (AI), can expedite the prior authorization processes for select items and services that have been identified as particularly vulnerable to fraud, waste, and abuse, or inappropriate use.”

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Understanding Ghanaian STEM Students’ AI Learning Intentions

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In recent years, the field of education has undergone a remarkable transformation, particularly with the rise of technology and artificial intelligence (AI). Amidst this evolution, a pressing question emerges: how do we foster an environment conducive for students to embrace AI technology, particularly in the context of Ghana? The research conducted by Abreh, Arthur, Akwetey, and their colleagues aims to unravel this very question, delving deep into STEM students’ intentions to learn about AI through a comprehensive modeling approach utilizing Partial Least Squares Structural Equation Modeling (PLS-SEM) and fuzzy set Qualitative Comparative Analysis (fsQCA).

The study focuses primarily on Ghana’s educational landscape, where the integration of AI into the curriculum presents new opportunities as well as challenges. The authors argue that understanding the factors influencing students’ intention to learn AI is crucial for policymakers and educators aiming to enhance the educational experience and job readiness of future generations. In an era defined by digital progression, an examination of student motivations and aspirations is not only relevant but essential in shaping the future of education in Ghana and beyond.

By employing the PLS-SEM approach, the researchers parsed through various dimensions, including individual characteristics, social influences, and perceived educational effectiveness, to determine how these factors impact students’ willingness to engage with AI. The data generated by this method offers a robust mechanism to visualize complex interrelations that traditional research methods might overlook. Importantly, PLS-SEM serves as a powerful tool to facilitate an understanding of both direct and indirect influences on students’ learning intentions.

In conjunction with PLS-SEM, the application of fsQCA provided an innovative lens through which to evaluate the heterogeneous nature of student populations. This method recognizes that varying combinations of factors can lead to the same outcome—in this case, the intention to learn AI. The researchers found that while certain commonalities existed among students, unique pathways also emerged depending on individual backgrounds, learning environments, and available resources. This nuanced understanding allows educators to craft tailored interventions that meet diverse learner needs.

Ghana’s demographic landscape presents both advantages and hurdles in increasing students’ interest in AI. The nation is youthful, with a significant percentage of the population being students. Capitalizing on this demographic dividend requires systematic educational reforms that align with the global demand for AI competency. By showcasing the vast potentials of AI, classrooms can become incubators for innovation where students are not only passive recipients of knowledge but active creators of technology.

The research highlights that students often struggle with understanding what AI entails and its relevance to their future careers. There is a gap between theoretical knowledge and practical application. To address this divide, educational institutions must incorporate hands-on learning experiences that engage students with real-world AI applications. Workshops, internships, and collaborative projects could serve as catalysts for interest and excitement in AI studies.

Moreover, the role of peer influence cannot be understated. The study underscores the importance of social interactions in shaping attitudes toward learning AI. Mentorship programs and peer-led initiatives can provide a supportive atmosphere wherein students encourage one another to delve deeper into AI topics. Creating a collaborative rather than competitive learning environment enhances motivation and retention of knowledge.

Further, the researchers found that exposure to technology and AI-related content significantly boosts students’ intentions to learn. Integrating AI concepts across various disciplines—be it economics, healthcare, or environmental science—can broaden students’ perspectives and demonstrate the interdisciplinary applications of AI. Students should be able to see AI not just as a tool but as a transformative force that can solve complex problems in diverse fields.

The findings of this study also resonate beyond Ghana, highlighting the global need to assess students’ readiness to embrace emerging technologies. Countries grappling with similar educational challenges can adopt and adapt the models presented in this research. As we move into a future increasingly dominated by AI, educational methodologies must evolve to prepare students not only to consume technology but to innovate and lead in this field.

To ensure these educational reforms are sustainable, government support and investment are imperative. Stakeholders must collaborate to provide the necessary funding, infrastructure, and resources for educational institutions to thrive in the AI domain. Encouraging partnerships between academia, industry, and government can lead to synergies that enhance learning outcomes and pave the way for a skilled workforce equipped for the challenges of the 21st century.

Importantly, the study’s implications extend to teacher training programs as well. Educators themselves must be well-versed in AI technologies and methodologies to effectively teach their students. Professional development opportunities focused on AI can empower teachers, enabling them to inspire and guide students as they explore new territories in technology.

In essence, this research encapsulates a vital exploration of factors influencing students’ intentions to engage with AI in Ghana’s educational space. By employing advanced modeling techniques and reflecting on the complexities of various student experiences, the authors provide valuable insights that can inform effective teaching practices and policies. As AI continues to reshape the world, the educational approaches guided by this research may well serve as stepping stones toward a future where students are not only consumers of technology but innovative contributors to an AI-driven world.

Subject of Research: Intention of STEM Students to Learn Artificial Intelligence in Ghana

Article Title: Modelling STEM students’ intention to learn artificial intelligence (AI) in Ghana: a PLS-SEM and fsQCA approach

Article References:

Abreh, M.K., Arthur, F., Akwetey, F.A. et al. Modelling STEM students’ intention to learn artificial intelligence (AI) in Ghana: a PLS-SEM and fsQCA approach.
Discov Artif Intell 5, 223 (2025). https://doi.org/10.1007/s44163-025-00466-8

Image Credits: AI Generated

DOI: 10.1007/s44163-025-00466-8

Keywords: Artificial Intelligence, Education, STEM, Learning Intentions, Ghana, PLS-SEM, fsQCA, Student Engagement, Educational Reform, Technology Integration, Teacher Training, Peer Influence, Interdisciplinary Learning.

Tags: AI integration in curriculumAI learning intentionsdigital progression in educationeducational transformation in Ghanaenhancing job readinessfactors influencing AI learningfuture of education in Ghanafuzzy set qualitative analysisGhanaian STEM educationPLS-SEM methodologystudent motivation for AItechnology in education



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Globevisa CEO Unveils its AI Strategy, Transforming Traditional Services Into a Tech-Driven Powerhouse

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— In a decisive move set to redefine the future of service industries, Globevisa Group CEO and co-founder Henry Fan has launched a groundbreaking artificial intelligence (AI) transformation strategy that embeds AI at the core of the company’s operations. This bold initiative is not only improving efficiency and customer service but also positioning Globevisa as a global innovator in tech-driven business leadership.

Rather than relegating AI to a standalone IT function, Henry established an in-house AI Empowerment Center—a “special forces” unit that reports directly to him. This reflects his belief that AI is a business-wide opportunity, not a departmental add-on. As the architect of this transformation, Henry serves as strategist, change agent, and internal evangelist, overseeing a company-wide shift in how AI is deployed, adopted, and embraced.

The Strategist: Defining a Clear Vision for AI

Henry’s leadership begins with a clear vision for an “AI-driven Globevisa,” which he positions as the company’s North Star. This vision guides every decision, from budget allocation to the selection of core technologies. Henry ensures that AI efforts are tightly aligned with Globevisa’s business objectives, such as revenue growth, operational efficiency, and brand enhancement.

His approach is pragmatic and phased, focusing on high-value pilot projects before scaling up. He champions a “showcase to full coverage” strategy, quickly demonstrating tangible results in areas like marketing, customer service, and human resources. By tying AI initiatives directly to measurable business outcomes, such as reducing document processing times, increasing content production efficiency, or improving sales conversion rates, Henry ensures that Globevisa’s AI efforts are not just theoretical but practical and impactful.

Tackling Operational Inefficiencies with AI

Henry’s journey into AI began with a recognition of inefficiencies in the company’s internal processes, which were bogged down by repetitive, manual tasks. He saw AI not as a buzzword but as a tool to address these core operational challenges.

1.Document Processing

Globevisa’s success involves processing countless client documents, such as bank statements and passports, a task prone to human error and delays. To combat this, Henry spearheaded the development of an AI document extraction and auditing tool. This technology scans documents, extracts key information, and cross-checks it against system requirements, significantly reducing manual review time and errors. The result is faster, more accurate processing, enabling the team to handle a higher volume of clients.

2.Customer Service

Globevisa’s customer service team was overwhelmed by repetitive inquiries, leaving little time for complex, high-value interactions. Henry’s team introduced a 24/7 AI-powered chatbot capable of handling up to 80% of standard queries. This freed human staff to focus on nuanced, emotional, and complex client concerns, enhancing overall customer satisfaction.

3.Marketing Content Creation

The process of generating marketing content was slow and often lacked variety. Henry addressed this by deploying an “AI Content Factory” that generates blog posts, social media updates, and ad copy from simple keywords. This tool dramatically increased content production efficiency while reducing costs, ensuring Globevisa remains competitive in its digital marketing efforts.

The Breaker of Barriers: Overcoming Organizational Challenges

While implementing AI solutions, Henry quickly realized that the biggest obstacles were not technological but organizational and cultural. Resistance to change, data silos, and fears of job displacement were among the challenges he faced.

1.Breaking Data Silos

With 110,000 successful cases in hand, Globevisa sits on a treasury of data. However, many departments at Globevisa operated in isolation, hoarding data and refusing to share it. For instance, the AI team often needed years of sales data to train models, but obtaining access required navigating internal politics. Henry personally stepped in as a “Breaker of Barriers,” reframing data-sharing as an investment in the company’s future rather than a threat. He emphasized that AI would provide departments with sharper tools to achieve their goals, fostering a spirit of collaboration.

2.Addressing Job Displacement Fears

Employees, particularly senior staff such as copywriters, were initially hostile toward AI, viewing it as a potential replacement for their roles. Henry tackled this by redefining their positions and elevating their value. He assured employees that AI would handle 80% of mundane tasks, allowing them to focus on the remaining 20% of creative, high-value work. Copywriters, for example, were rebranded as “AI Creative Strategists” and “Final Quality Controllers,” responsible for refining and overseeing AI-generated drafts. This reframing not only eased fears but also inspired employees to embrace AI as a tool for professional growth.

3.Adjusting KPIs to Reward Adoption

In traditional service industries, departments often cling to outdated KPIs, which can hinder the adoption of new technologies. Henry addressed this head-on by personally revising performance metrics for teams involved in AI pilots. For example, customer service teams previously measured on “calls handled per hour” were now evaluated on metrics like “complex problem-solving rates” and “customer satisfaction scores.” This ensured that employees were rewarded for adopting new behaviors, not for sticking to inefficient practices.

The Chief Evangelist: Fostering a Culture of Innovation

Henry understands that technology alone cannot drive change; it requires a cultural shift. As Globevisa’s “Chief Evangelist,” he regularly communicates the importance of AI initiatives through all-hands meetings, internal newsletters, and personal demonstrations. By openly using AI tools, such as leveraging AI for meeting summaries, he leads by example, fostering a company-wide culture of innovation.

His leadership style is characterized by inclusivity and transparency. Instead of imposing top-down mandates, he actively involves employees in the transformation process, ensuring that AI is seen not as a threat but as an enabler. This human-centric approach has been instrumental in building trust and enthusiasm for AI across the organization.

A Model for the Future of Services

Henry’s approach provides a replicable roadmap for other service-based companies navigating digital transformation. His model centers on measurable value, cultural readiness, and human-AI collaboration, proving that even traditional industries can lead in a tech-first economy.

About Globevisa

Globevisa Group is a global leader in immigration and relocation services, with over 110,000 successful cases worldwide. Committed to service excellence and innovation, the company helps individuals and families navigate complex immigration processes with confidence.

Contact Info:
Name: Lena Huang
Email: Send Email
Organization: GLOBEVISA GROUP (HONG KONG) LIMITED
Website: https://www.globevisa.com/

Release ID: 89168612

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