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CSEET · Economic and Business Environment · AI and Business Environment

A manufacturing firm in Chennai automates quality inspection with AI vision systems, cutting defects and costs, but 200 inspectors become redundant. Which statement best captures the balanced assessment under the AI challenges framework?

The balanced view is that productivity and quality gains are real, yet job displacement must be managed through reskilling and transition measures. Ignoring displacement, assuming equal jobs are created within the same firm, or denying economic benefit are all one-sided and unsupported conclusions.

  1. AProductivity gains are real, but workforce displacement requires reskilling and transition measuresCorrect
  2. BSince costs fall, displacement is not a business concern at all
  3. CAI adoption always creates exactly as many jobs in the same firm as it removes
  4. DDisplacement proves AI has no benefit to the economy

Explanation

AI raises productivity and quality but can displace routine tasks. A responsible approach pairs adoption with reskilling and redeployment. Claiming no concern, guaranteed equal job creation within the firm, or no economic benefit is one-sided or unsupported.

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