India might Tax Companies Cutting Jobs Due to AI: CEA Highlights Balancing AI Benefits and Social Costs

The government may consider taxing companies that cut jobs due to the adoption of artificial intelligence (AI), according to the Chief Economic Advisor (CEA). This proposal seeks to balance the benefits of AI in boosting productivity with the social costs of job losses. The government is exploring ways to ensure that the adoption of new technologies does not lead to widespread unemployment. The CEA emphasized the need for policies that foster technological progress while addressing its potential negative impacts on the labor market.