Artificial intelligence (AI) is one of the fastest-growing technologies today. It refers to machines and computer systems that can-do tasks typically requiring human intelligence, like learning, reasoning, decision-making, understanding language, and solving problems. In the last 10 years, AI has shifted from a futuristic idea to a real part of daily life. Countries are using AI in business, healthcare, education, transportation, and Government. Sri Lanka is part of this trend. Recently, many organisations in Sri Lanka, including banks, Government offices, factories, call centres, supermarkets, and online businesses, have started using AI technologies for tasks previously done by human workers.
The adoption of AI in Sri Lanka stems from a need for efficiency and competitiveness. As a developing country facing economic issues, Sri Lanka must boost productivity while cutting operational costs. AI systems assist organisations in achieving these goals by automating repetitive tasks, processing large amounts of data quickly, and reducing errors. For example, banks utilise AI to identify fraudulent transactions, evaluate credit risk, and offer automated customer support via chatbots. Government agencies are digitising records and using automated systems to handle applications and documents more efficiently. In manufacturing, AI-powered machines monitor production lines and spot defects. Small and medium-sized businesses also employ AI tools for digital marketing and sales forecasting.
While AI offers many benefits, such as increased productivity, accuracy, speed, and cost savings, it also raises significant concerns. One major issue is job loss. In Sri Lanka, many workers depend on clerical, administrative, service, and routine office jobs for their incomes. Numerous individuals work as data entry operators, receptionists, bank clerks, call centre agents, billing assistants, and office support staff. These jobs often involve repetitive tasks that AI can automate. As AI systems become more powerful and affordable, organisations may increasingly prefer automation over human workers.
The job loss issue is particularly sensitive in Sri Lanka due to already limited employment opportunities. Youth unemployment remains a problem, and many graduates seek stable office jobs in the Government or the private sector. However, the job landscape is changing. When businesses implement AI systems that can work non-stop without fatigue and make fewer errors, they may cut down their workforce to save costs. This causes anxiety and uncertainty among employees concerned about job security and financial stability. Young people entering traditional career paths could find fewer opportunities in the future.
The main driver of job loss due to AI is technological advancement. AI technologies are becoming more powerful and accessible. Cloud computing, big data, and machine learning have simplified the process for organisations to adopt intelligent systems. Unlike humans, AI does not need salaries or breaks. It can work 24 hours a day and process vast amounts of information in seconds. Companies in competitive markets find these advantages appealing. Consequently, jobs that involve repetitive tasks like data entry, payroll processing, inventory management, customer service inquiries, and basic accounting are increasingly being automated.
Another crucial factor in job loss is the lack of tech skills among many workers. A good number of the Sri Lankan workforce has limited experience with advanced digital tools and AI systems. Workers who have held routine jobs for years may struggle to adapt to new technologies. Without adequate training and reskilling opportunities, they become vulnerable to losing their jobs. Employers may choose to hire skilled tech professionals or invest in automation instead of retraining existing staff. This skills gap increases inequality between those who are tech-savvy and those who are not.
The consequences of job loss due to AI can be severe. Workers who are laid off may face financial struggles and stress. Families relying on a single income might find it hard to cover everyday expenses. In a country with limited social safety nets, unemployment can quickly lead to poverty. Rising unemployment could result in migration and social unrest. Young graduates may feel discouraged if traditional career paths become less reliable. If not managed properly, AI adoption might worsen income inequality and deepen the divide between highly skilled tech professionals and low-skilled workers.
However, it is essential to recognise that AI does not solely eliminate jobs; it also creates new opportunities. Technological revolutions usually change the nature of work rather than completely eradicating it. Similarly, AI is generating demand for new jobs like data analysts, AI engineers, cybersecurity experts, and digital marketing professionals. These positions require advanced skills and offer the potential for a higher income.
In Sri Lanka, AI also presents opportunities through entrepreneurship. Instead of viewing AI just as a threat, people can use it as a tool to boost productivity and innovation. Many young Sri Lankans are leveraging AI for freelancing, electronic-commerce, graphic design, content creation, and software development. AI tools help entrepreneurs create marketing materials, analyse customer behaviour, and manage social media platforms. Small businesses can use chatbots to respond quickly to customer inquiries and enhance service quality. By lowering costs and increasing efficiency, AI allows small enterprises to compete more effectively.
Freelancers gain significantly from AI tools. Writers use AI to generate ideas and refine content. Designers create visuals with AI-assisted software. Developers speed up coding with intelligent assistants. These technologies don't replace human creativity but enhance it. By blending human skills with AI capabilities, individuals can improve productivity and increase income opportunities.
Education and policy play a vital role in shaping the impact of AI on employment. Schools and universities in Sri Lanka need to update their curricula to include digital literacy, programming, and problem-solving skills. Students should cultivate creativity and entrepreneurial mindsets instead of depending solely on traditional jobs. Technical institutions must provide reskilling programs for at-risk workers. Lifelong learning should become a societal priority.
The Government also has a duty to ensure a smooth transition. Investing in digital infrastructure, supporting tech startups, and providing incentives for innovation can help create new job opportunities. Public-private partnerships can offer affordable training programs. Awareness campaigns can educate citizens about the importance of adapting to technological change.
In conclusion, AI-driven job loss is a significant issue for Sri Lanka today. While AI offers benefits in efficiency and competitiveness, it also raises worries about unemployment and job security. The effect of AI depends on how the country handles technological change. By reforming education, providing Government support, encouraging entrepreneurship, and promoting lifelong learning, Sri Lanka can turn AI from a possible threat into a useful tool for national development. Welcoming change and promoting innovation can help the country create a strong workforce and secure a better future in the era of AI.
Additionally, cooperation between the private sector, educational institutions, and policymakers is vital for ensuring growth that includes everyone. If Sri Lanka implements proactive strategies now, it can reduce risks, increase opportunities, and make sure that technological advancements benefit all parts of society equally.
The writer is studying at the Sri Jayewardenepura University’s Management Studies and Commerce Faculty’s Entrepreneurship Department
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The views and opinions expressed in this column are those of the author, and do not necessarily reflect those of this publication