• Tirupathi Gangadharam
• Prof. K. Radhika

Abstract The advent of artificial intelligence (AI) and automation in India's formal sector—spanning IT, manufacturing, finance (BFSI), and healthcare—is revolutionizing the future of work, intensifying debates on labour rights and economic justice. By October 2025, AI tools are automating routine tasks, rendering over 60% of formal sector jobs vulnerable to displacement by 2030, particularly in IT and BPO, affecting up to 38 million employees. In IT, firms report 2-5% workforce reductions amid AI pivots, fuelling psychological distress and skill gaps among professionals, with 69% of formal jobs at risk per the Future of Positions Report 2025. Yet, AI could generate 4 million high-skill roles in AI engineering, ethics, and human-AI collaboration by 2030, driving 9% sectoral growth in IT and manufacturing. This shift exacerbates inequalities: low- and medium-skilled workers face de-skilling, while formal employment lingers at 10% post-pandemic, disproportionately impacting women and marginalized groups in precarious roles. Algorithmic management—governing hiring, surveillance, and wages—challenges labour codes like the Industrial Relations Code (2020), breaching privacy and equality rights (Articles 14–21), as highlighted in OECD and ILO analyses. The ILO's India Employment Report 2024 notes job polarization, with 70% of roles at high AI risk and youth NEET rates at 20%, underscoring digital divides. For equitable transition, NITI Aayog's October 2025 Roadmap proposes a National AI Talent Mission to reskill 40 million workers via public-private partnerships, embedding AI literacy in education, and mandating ethical AI certifications under expanded social security frameworks. These measures could yield net 4 million jobs, balancing innovation with protections for dignified, inclusive work.

Keywords: AI Automation, Labor Rights, Formal Sector, Reskilling, Economic Justice

"AI and Labour Rights: The Future of Work, Automation, and Economic Justice in India’s Formal Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org), ISSN:2349-5162, Vol.12, Issue 11, page no.d403-d411, November-2025, Available :http://www.jetir.org/papers/JETIR2511344.pdf

"AI and Labour Rights: The Future of Work, Automation, and Economic Justice in India’s Formal Sector", International Journal of Emerging Technologies and Innovative Research (www.jetir.org | UGC and issn Approved), ISSN:2349-5162, Vol.12, Issue 11, page no. ppd403-d411, November-2025, Available at : http://www.jetir.org/papers/JETIR2511344.pdf