Bengaluru Faces Potential Job Losses Due to AI Automation
Bengaluru, recognised as India’s technological centre, is reportedly on the verge of a significant wave of job losses linked to AI automation, as indicated by a viral Reddit discussion. This message warns that many low-salaried IT professionals could face mass layoffs in the near future, which may create a knock-on effect on the local economy, specifically affecting PG accommodations and small enterprises reliant on the technology workforce.
One Reddit user mentioned, “Landlords around ORR who have invested substantial sums expecting long-term returns will likely be severely disappointed,” anticipating a decline in rental demand alongside improved traffic conditions throughout the city.
The user drew a comparison between the influence of AI on software development and the transformative effect of the printing press on education. They contended that AI can undertake the functions of entry-level software developers “with increased confidence and precision for a relatively low cost.”
Beyond the IT sector, the post intimated that automation could soon impact finance, operations, and accounting sectors, labelling it a “key contributor to the most significant downturn in India’s history.”
This post ignited vigorous discussions. One user remarked that AI-driven chatbots and robotic process automation (RPA) have already begun to eliminate roles in BPO and call centres. Another participant highlighted the ongoing job cuts among software trainees, projecting “a vast correction in developer salaries” while speculating that AI would not completely substitute domain experts for at least five years.
Some users found a silver lining in the situation. One remarked, “Reduced traffic and lower rents? Let’s embrace AI,” attributing the rise in rental prices to landlords. Another jested, “While COVID-19 failed to disrupt the rental market, AI will.”
An additional commenter stated that the elevated rents in Bengaluru are not only a result of job demand but also stem from tenant behaviours. They noted, “Rent levels aren’t high because of the job market… they are elevated due to tenant interactions. Many singles and roommates share housing expenses, enabling them to afford higher rents without individual financial strain. This dynamic empowers landlords to set higher charges, knowing tenants can divide the costs. Consequently, this distorts the market, driving up prices even for those who prefer living alone. Rather than pushing back against inflated rates, individuals accept excessive pricing due to the perception that they can manage shared costs.”
Conversely, another user rejected concerns regarding AI-related job reductions, asserting that IT positions will remain stable for the foreseeable future. “In my role involving AI in the US, I can assure you these IT jobs are secure. New models are already depleting available data for training purposes. We scarcely have sufficient new data to support larger models. Someone remains responsible for reading, reviewing, and managing the code produced by AI, which struggles in this area—even with well-crafted prompts. It lacks effective reasoning abilities, particularly with extensive codebases and finds it challenging to implement minor alterations without causing issues. While AI might enhance productivity, human involvement is indispensable at every stage.”
