According to EY's latest Economy Watch report, Artificial Intelligence (AI) is poised to have a profound impact on India's skilled workforce and its IT services-led growth model. The report highlights that the rapid evolution of AI could reshape employment patterns, particularly affecting the large pool of skilled professionals who have benefited from the booming IT sector. As businesses globally adopt generative AI and automation to enhance productivity, concerns arise regarding the future of certain white-collar jobs in India, where services exports heavily rely on information technology and business process management. While AI presents opportunities for innovation, the report emphasizes the risks of job displacement if workers are unable to quickly adapt to changing skill requirements. Despite these challenges, EY remains optimistic about India's long-term growth, projecting it could become the world's largest economy in purchasing power parity terms by 2063, provided policymakers address emerging challenges such as geopolitical disruptions and technological shifts.