The rapid advancement of artificial intelligence (AI) presents both unprecedented opportunities and significant challenges for India's labour market. Examine. Also suggest strategies to align AI adoption with inclusive and resilient labour market outcomes.

AI presents strong and narrow capabilities at the current stage. Unprecedented Opportunities from AI include: Automation of routine administrative processes leading to more efficient and timely reports, awarding points etc. Augments decision making leading to workers who can improve the effectiveness of their decisions through big data analysis. Improved management of labor - tracking progress, making automated reports, awarding points etc. Lower search cost - AI-based apps can be used for more efficient search of new jobs aligned with one's skills. Evidence-based policy - by using AI to track developments in the labor market.

Challenges from AI include: threat of job displacement, hourglass model of firms - heavy at top and bottom but thinning of middle-skill jobs, introduction of pre-conceived bias, threat of data safety and privacy of workers, labor market unrest leading to social unrest and tensions. Strategies to align AI with resilient and inclusive labor market include: introducing AI-skilling in schools and colleges, mid-career AI-education (e.g. AI for ALL Programme), mandatory training of displaced workers in a PPP mode, Industry-Academia linkage to ensure market-oriented curriculum, risk-based regulation based on the risk of displacement and unemployment, digital support - apps and websites to match demand and supply of AI-based work. Thus AI can be seen as a double-edged sword for the labor market. Pro-active government support is necessary to make it inclusive.