Raghuram Rajan: AI to Disrupt India's Services, Not Derail It

• Former RBI Governor Raghuram Rajan states AI will disrupt India's services sector, especially software firms, but dismisses doomsday scenarios as exaggerated.
• Rajan, a professor at the University of Chicago Booth School of Business, notes that while AI poses a challenge, the Indian services story can persist in other areas.
• He emphasizes that Indian software firms and employees must retool and reskill quickly, but believes this is an overcomeable challenge.
• Rajan cautions against overreacting to warnings like Citrini Research's, stating that large-scale AI adoption outside the frontier is gradual.
• He highlights India's cost advantage and skilled workforce, noting that multinationals are expanding global capability centers and high-end work in the country.