New Delhi, Jan. 31 -- The Economic Survey on Friday highlighted the growing unease and anxiety around Artificial Intelligence disrupting labour markets, and warned that if companies do not optimise the introduction of AI over a longer horizon or handle it with sensitivity, demand for policy intervention and the demand on fiscal resources to compensate, may become inevitable.

The pre-Budget document cited an IMF paper to say that governments may be forced to tax incremental profit of corporates that use AI to replace labour.

"It will leave everyone worse off and the country's growth potential will suffer, as a result," it warned.

A labour-surplus country like India cannot afford protracted labour displacement, the Economic Survey assert...