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Kerala Leads Indian States in AI-Complementary Employment
A new study looks at how artificial intelligence could affect workers in different Indian states.
Some jobs may use AI to help people work better, while other tasks could face pressure to be replaced.
Kerala has the largest share of workers in jobs where AI may support human work.
Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh have fewer such opportunities among their AI-exposed jobs.
Karnataka and Telangana also have many AI-exposed jobs, but fewer are clearly complementary to workers.
Punjab has the largest share of jobs involving routine tasks that could be affected by conventional automation.
The study says training and careful changes at work can help people benefit from AI.
It also recommends creating more jobs in areas that need human skills and interaction.
A Great Lakes Institute of Management study compares Indian states using labour force data from 2012 and 2025.
Kerala has the highest shares of AI-exposed employment (42%) and AI-complementary employment (14.4%).
Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh have lower AI exposure and a smaller share of complementary jobs than national averages.
Karnataka and Telangana have relatively high AI exposure, but below-average shares of complementary work; Punjab leads in high-routine employment at 44.6%.
The report recommends targeted reskilling, AI literacy, workplace redesign and more jobs in healthcare, education, elderly care and skilled trades.
- Who
- The Great Lakes Institute of Management authored the study; it examines workers across Indian states.
- What
- A working paper analyzes state-level employment exposure to AI, AI-complementary work, substitution pressure and routine automation.
- Where
- Across Indian states.
- When
- The working paper is dated October 2026 and uses labour force data from 2012 and 2025.
- Why
- The study assesses how the kinds of jobs workers do may shape whether AI raises productivity or creates substitution pressure, and recommends workforce policies.
Potential productivity gains
Substitution and automation pressure
What AI exposure means for workers
Potential productivity gains
In complementary occupations, including health professionals, teachers, scientists, engineers and managers, AI may support human skills and raise productivity.
Substitution and automation pressure
Some AI-exposed jobs face substitution pressure, and routine occupations may be vulnerable to conventional automation; exposure alone does not establish that jobs will be lost.
State-level opportunities and risks
Potential productivity gains
Kerala, Haryana, Maharashtra and Tamil Nadu have relatively strong bases of employment in AI-complementary occupations.
Substitution and automation pressure
Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh have lower AI exposure and a smaller complementary share among exposed jobs; Karnataka and Telangana also have below-national-average complementary shares despite relatively high exposure.
Key facts
- Study
- AI, Automation and India’s Workforce: Who Gains, Who’s Exposed, and How Policy Can Shape the Future
- Kerala AI-exposed employment
- 42%, the highest state share reported
- Kerala AI-complementary employment
- 14.4%, the highest state share reported
- National AI-exposed employment
- 24.6%
- Four-state AI-exposure average
- Uttar Pradesh, Bihar, Jharkhand and Madhya Pradesh average 19% of employment in AI-exposed occupations.
- Bihar job mix
- Among AI-exposed employment, 61.5% is in the substitution-pressure category and 24.1% in complementary work.
- National high-routine employment
- Rose from 27.6% in 2012 to 32.4% in 2025.
- Punjab high-routine employment
- 44.6%, the highest share among states cited.
Sources
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