AI and the Gig Economy: A transformative relationship with upskilling opportunities

The gig economy, characterised by short-term, project-based work, is undergoing a significant transformation due to the integration of artificial intelligence (AI).

While some fear AI will displace workers, a closer look reveals a more nuanced picture.

AI is creating new opportunities alongside automating tasks, with the key lying in adaptation and acquiring new skills.

AI's impact on work in the gig economy

According to Madhav Krishna, CEO of Vahan Inc., an AI-powered recruitment platform for the gig economy, “A lot of gig economy platforms like Zomato and Swiggy use AI for better order assignment and route planning, making the delivery process more efficient. This makes workers do more deliveries and helps the platform in turn make more money.”

“That aside, we use AI to match people with more relevant jobs, to automatically validate their documents and also to automate parts of the recruitment process,” he adds.

Similarly, a report by the Association for Entrepreneurship (AFE) notes how AI algorithms are recruiting talent by analysing skills, experience, and qualifications and matching workers with suitable opportunities.

This benefits both parties: businesses can find qualified workers quickly, while workers can access gigs that align with their expertise.

Krishna also adds that they had recently built a platform called ‘Samwadini’ through which they could use voice bots and talk to job seekers on the phone.

He mentioned that the bots sounded completely human and were able to ask for basic qualifications and match job seekers with jobs.

“This makes the job search and job acquisition process a lot more efficient and scalable, which is required in a country like India,” he says.

Additionally, the AFE report mentions that AI-powered chatbots can handle customer service inquiries, freeing up human workers to focus on more complex tasks that require creativity, empathy, and critical thinking.

This can improve efficiency and productivity for businesses while potentially creating new opportunities for workers to manage and oversee these AI systems.

The Future of Blue-Collar Jobs: Upskilling is key

Although concerns regarding AI displacing blue-collar jobs are valid, analysts believe that AI will create more blue-collar jobs than it eliminates.

A report by The Secretariat noted that AI can assist companies in optimising efficiency and productivity, leading to a potential increase in demand for skilled blue-collar workers who can manage and maintain these AI systems.

Resonating with similar sentiments, Sashi Kumar, Head of Sales at Indeed India, says, “A significant number of employees do not expect much disruption in their work in the next year. As companies are gradually adopting AI technology, there are mixed feelings among workers about how it will affect their day-to-day activities.”

“While some are unsure about its consequences, many are optimistic,” he adds.

Kumar also notes that among the top three expected impacts, there has been a strong interest in exploring automation to increase efficiency and the opportunity to learn new skills.

Krishna mentions that as more technological advancements come in and automate jobs, upskilling was going to be critical.

“It (automation of blue-collar jobs) will perhaps happen in the next 10 years. Today, most of the white-collar jobs are being automated through AI,” he notes.

While AI is being integrated into several processes, the Indian government has also invested in several training and upskilling programs for blue-collar workers.

According to the report by The Secretariat, the central government has launched several schemes, including Pradhan Mantri Kaushal Vikas Yojana, Jan Shikshan Sansthan, National Apprenticeship Promotion Scheme, and Craftsmen Training Scheme, to upskill and reskill blue-collar workers.

These initiatives can help bridge the gap between human and machine capabilities by equipping workers with the necessary skills to thrive in the AI-powered workplace.

On a separate note, Krishna highlights that the social security law for gig workers provides benefits like employees' state insurance (ESI) and provident fund (PF).

“It hasn’t come to force yet and is still a work in progress but I believe it is a very positive move."

AI as a partner, not a replacement

A YourStory report suggests that AI can help reduce unconscious bias in the recruitment process by evaluating candidates based on objective criteria like skills and experience.

This can ensure a more equitable hiring process for blue-collar workers.

However, it also noted that AI should be used to augment human judgment, not replace it.

“Combining AI’s data analysis and pattern recognition prowess with human expertise in assessing cultural fit can lead to the most effective hiring outcomes,” says the report.