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AI Boom Triggers Mass Job Cuts In Indian Tech Sector
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Sarah Frazier Former Content Manager
India’s biggest tech firms are performing mass layoffs as AI transforms the IT sector, endangering both white-collar positions and middle-class financial stability throughout the nation.
In a rush? Here are the quick facts:
- TCS to cut 12,000 middle and senior management jobs due to AI.
- AI is automating tasks once done by India’s massive IT workforce.
- Companies now hire fewer workers while prioritizing efficiency and automation.
India’s IT sector is facing major changes, with thousands of jobs at risk due to the rise of artificial intelligence..
BBC reports that the Indian IT services leader, Tata Consultancy Services (TCS), announced plans to eliminate 12,000 middle and senior management positions, which represent 2% of its total workforce.
TCS says the move is to make the company “future ready” while it invests in artificial intelligence and adjusts to the fast-evolving technology environment. BBC notes that for decades, companies like TCS have relied on skilled workers to deliver affordable software solutions to worldwide clients.
But now, AI is automating many of those tasks, shifting demand toward innovation instead of manpower.
“A number of re-skilling and redeployment initiatives have been under way,” TCS said, adding it will be “releasing associates from the organisation whose deployment may not be feasible,” as reported by the BBC.
According to Neeti Sharma of staffing firm TeamLease Digital, “Across IT companies, people managers are being let go while the doers are being kept to rationalise the workforce and bring in efficiencies,” reports the BBC.
She adds that while hiring in AI and cloud tech is rising, “it is not at the same intensity at which people are being fired.”
Experts say there’s a sharp “skills mismatch” in the industry. “This technology shift is forcing businesses to reassess their workforce structure,” said the economist Rishi Shah, as reported by the BBC.
India needs a million AI professionals by 2026, yet fewer than 20% of current IT workers are AI-trained. The growing number of layoffs in cities such as Bengaluru and Hyderabad creates concerns about the potential decline of India’s middle class, which depends on IT employment.
BBC reports that Arindam Paul, founder of Atomberg, warned: “Almost 40–50% white collar jobs that exist today might cease to exist.”
Image by TechDaily, from Unsplash
Researchers Warn AI Could Rig Markets Without Being Told
- Written by Kiara Fabbri Former Tech News Writer
- Fact-Checked by Sarah Frazier Former Content Manager
A new study reveals that even basic AI bots can learn to collude in trading simulations, forming price-fixing cartels without human guidance.
In a rush? Here are the quick facts:
- AI bots colluded in trading simulations without being programmed to do so.
- Collusion emerged in both noisy and clear market conditions.
- Limiting AI complexity may unintentionally increase collusive behavior.
Artificial intelligence bots demonstrate market-rigging abilities, even when they lack intelligence or malicious intent.
A new study by researchers from the Wharton School and the Hong Kong University of Science & Technology has shown that even “dumb” AI bots can learn to collude without any human instructions, posing serious concerns for regulators.
“You can get these fairly simple-minded AI algorithms to collude” without being prompted, said Itay Goldstein, Wharton finance professor and co-author of the study, as reported by Bloomberg . “It looks very pervasive, either when the market is very noisy or when the market is not noisy,” he added.
The researchers built simulated trading markets, containing retail investors and mutual funds, they then allowed reinforcement learning bots to execute trades.
The bots showed an unexpected tendency to cooperate, which resulted in price fixing and profit optimization, despite lacking built-in collusive behavior in their design.
In both noisy and clear market conditions, they eventually chose to “settle,” stopping the search for better strategies. The researchers called this “artificial stupidity,” as reported by Bloomberg.
“For humans, it’s hard to coordinate on being dumb because we have egos,” said co-author Winston Dou, reports Bloomberg. “But machines are like ‘as long as the figures are profitable, we can choose to coordinate on being dumb,’” the researcher added.
The bots scored above 0.5 on a “collusion capacity” scale, where 1 indicates a perfect cartel. The findings don’t prove this behavior is happening in real markets, but they serve as a warning.
“They worry that it’s not their intention,” said Dou of asset managers, as reported by Bloomberg. “But regulators can come to them and say: ‘You’re doing something wrong,’” Dou added.
The study urges regulators to focus on behavioral outcomes rather than intent or communication. Ironically, limiting AI complexity might worsen collusion by locking bots into simplistic, profitable routines.
