Who loses to automation? AI-driven labour displacement and the limits of reskilling policies in platform-based informal work in India

Ramteke, Anagha and Hari, Ganga (2026) Who loses to automation? AI-driven labour displacement and the limits of reskilling policies in platform-based informal work in India. International Journal on Advanced Computer Theory and Engineering, 15 (1S). pp. 361-366. ISSN 2319-2526

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Abstract

Rapid advances in artificial intelligence (AI) and automation have led to serious concerns about labour displacement and job insecurity, yet their effects vary widely across different labour market contexts. This paper examines how AI-driven automation shapes employment outcomes in platform-based informal work in India, with a focus on labour displacement and limits of reskilling policies. Using a qualitative, secondary literature-based analysis which examines the distinction between job displacement and task displacement, the study examines how algorithmic management restructures work in platform-based employment. The paper argues that while AI primarily operates at the task level, the lack of job security, institutional protection and access to alternative labour tracks means that task-level displacement manifests as complete job displacement in the informal sector especially in platform-based informal work. Furthermore, it shows that prevailing reskilling policies are not suitable for this context as they assume access to stable employment, training opportunities and institutional support that the informal sector generally lacks. The findings highlight the importance of labour market structure in shaping the employment effects of automation and suggest that policy responses must move beyond reskilling to address informality and job quality in developing economies. On the basis of the mentioned findings, this paper proposes potential policy implications which focuses on the importance of a multifaceted approach to reskilling and job protection.

Item Type:	Article
Authors:	Ramteke, Anagha and Hari, Ganga
Document Language:	Language English
Uncontrolled Keywords:	AI-driven automation, platform-based informal work, labour displacement, algorithmic management, employment policy in developing economies
Subjects:	Social sciences > Economics > Labor economics > Labor force and market Social sciences > Economics > Production > Economic policy, economic development, economic growth
Divisions:	Azim Premji University - Bengaluru > School of Arts and Sciences
Full Text Status:	Public
URI:	http://publications.azimpremjiuniversity.edu.in/id/eprint/7917
Publisher URL:	https://doi.org/10.65521/ijacte.v15i1s.1338

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