Govt has done its part on GCC, industry must build capabilities to meet AI challenge: CEA

Chief Economic Adviser V Anantha Nageswaran on Thursday said the government has fulfilled its role by announcing several measures in the Budget to support Global Capability Centres (GCCs). He called on the industry to invest in skilling, capability development and innovation to address challenges posed by artificial intelligence (AI).

Observing that AI has exposed old models, Nageswaran said it is likely to displace routine, repetitive and rule-based tasks. He added that it would be unrealistic to deny the risks posed to business models built solely around low-cost execution. Highlighting the importance of government-industry collaboration, the CEA said the Union Budget has addressed a long-pending industry demand by simplifying and expanding the transfer pricing safe harbour regime for GCCs.