Raghuram Rajan: AI Fears are 'Science Fiction,' Firms Need Time to Adapt

• Former RBI Governor Raghuram Rajan dismisses warnings of AI causing collapse in India's services economy, calls it an adjustment period.
• Rajan, a professor at the University of Chicago Booth School of Business, states India's services sector is resilient despite early disruptions in software.
• He acknowledges automation streamlines roles but believes AI can unlock new demand if companies and workers reskill quickly.
• Rajan advises against overreacting to market selloffs triggered by AI concerns, urging not to get 'overly wound up in science fiction'.
• He emphasizes India's time to reposition, its cost advantage, and the need for policy focus on human capital, training, and R&D.