A4G Impact Collaborative · Governance of AI

The Ladder We Are Pulling Up

From disruption to depth.

A modern Indian corporate office. Many professionals work at a long shared table on laptops, seen from above in warm morning light.
India’s white-collar economy — the workforce this work seeks to protect.

Priya is 23. She is waiting for a shortlist that will not come.

She is the first person in her family to complete an engineering degree. Her father drove a tempo, her mother stitched garments, and both spent their savings on her B.Tech in Computer Science.

In 2022, India’s top IT firms hired six lakh freshers. In 2025, that number was one lakh twenty thousand (Business Today). Eighty percent of the entry-level door has closed in three years. Roughly 1.5 million engineering graduates like Priya still enter the market every year. The math no longer works.

The routine cognitive work that used to be the first rung of Priya’s professional life is being done by AI at near-zero marginal cost. The rung itself is being pulled up.

India has a five-to-seven year window before multiple graduating cohorts pass through without absorption. This is not a metaphor. It is a planning horizon.

The A4G Impact Collaborative was formed to see this shift clearly, name it accurately, and help the country design its response before the window closes.

Business Today chart showing fresher hiring dropping and organization pyramid.
Annual fresher hiring in India collapsed from 6,00,000 in 2022 to 1,20,000 in 2025. The pyramid on the right shows the org shape that emerges: a fat base of freshers, a narrow layer of team leads, a tiny apex of architects and client partners. (Business Today)

What we are seeing

The signals are already in the data. India’s IT/BPM sector employs 5.8 million people and faces a 75% AI-exposure rate according to IMF and ILO estimates. Between 60 and 80 million formal Indian workers sit in the highest-exposure categories today. Graduate unemployment is near 29% while GDP grows at 6–7%. That gap is the signature mark of a structural break.

The industry itself has moved from bench-building to what Business Today describes as just-in-time hiring — smaller cohorts, lateral recruitment, leaner benches. This is not a cyclical hiring pause. It is a new model.

The ₹10,372 crore IndiaAI Mission has invested seriously in compute, foundational models, and elite skilling. It is silent on workforce transition. India today has neither an equivalent of Singapore’s SkillsFuture nor Germany’s Kurzarbeit, and no institutional body tracking AI-driven displacement in real time.

Our colleague Charu Thukral has called this exposure without protection. It is the frame that organises the whole conversation.
Read our foundational policy research essay: The Ladder We Are Pulling Up →
Also available on LinkedIn: Charu Thukral →
A modern open-plan office showing a full row of empty desks.
The middle row of desks stands empty. The upstream tier is populated. The downstream tier is populated. The mid-career tier — where Priya was supposed to sit — is thinning.

Our angle

A4G is not a technology institute and not a policy shop. We are a small, specific kind of thing. A collective that looks deeply at the economic and sociological shape AI is giving to work, and then guides governments and policymakers on what to build in response.

Our foundational method is patient research combined with convening. We publish thought-leadership work like Charu’s ladder essay. We run the Governance Dialogues podcast with thought partners including Dr Vivienne Ming, Prof Soumitra Dutta (Dean, Saïd Business School, Oxford), Dr Rajiv Kumar (former Vice Chairman, NITI Aayog), Prof Cary Coglianese (University of Pennsylvania Carey Law School), Gaurav Rastogi and Dr Shakti Goel. We hold national convenings with government and industry participation.

The Governance work is led by our co-founders Nitin Dhawan and Aarti Ahuja, with Charu Thukral as Research Scholar anchoring the empirical work.

What we are building

Four research priorities we are organising a fellowship programme around.

Real-time tracking of AI-driven job displacement in India. Building the country’s first high-frequency data infrastructure to measure how AI is reshaping formal employment. Combines CMIE-CPHS household surveys, EPFO provident-fund records, and enterprise hiring data. Separates real AI substitution from cyclical slowdowns. This is the empirical foundation the other three priorities build on.

What happens to unabsorbed graduates. A 24-month longitudinal study following engineering graduates from Tier-2 and Tier-3 institutions who did not receive a placement. Tracks where they go — gig work, migration, informal employment, skill decay — and what those trajectories mean for the middle-class social contract.

Income support systems for the transition years. Comparative policy design adapting Singapore’s SkillsFuture (portable training credits) and Germany’s Kurzarbeit (transition subsidies) to Indian fiscal conditions. Includes design work on a National AI Displacement Insurance Fund co-funded from IT-BPM sector revenues.

Higher education after LLMs. Curricular research with Indian universities on what to teach when codified technical knowledge is exactly what AI replicates best. Focus on judgment, cross-domain reasoning, and continuous self-directed learning as the durable human skills for a post-LLM economy.

A classical brass beam balance with human figurines.
One person plus AI matches a two-person team (HBS field experiment, n=776 at Procter & Gamble).

How the programme runs

We are convening a design workshop this year that brings labour economists, HR institutional leaders, government policymakers, and Indian founders together to draft the first-generation response for India. The workshop is invitation-based and will produce a public design paper.

We are launching an A4G Fellowship Programme to build the research team behind the four priorities. Fellows will be drawn from Indian universities, doctoral programmes, and mid-career institutional practice. Themes for the fellowship draw from our upcoming Intelex essay contest topics and align with the current global research frontier including Anthropic’s five priorities on the economic impact of AI.

Professionals in office, repeated.
The workforce this work exists to protect.

Working with us

The five-to-seven year window is real. The design work that shapes India’s response to AI in the labour market must happen now.

We are inviting institutional donors, philanthropic funders, and academic partners into three specific conversations.

Grant partners can request our detailed philanthropy proposal covering the four research priorities, the fellowship programme, and the design workshop. Academic partners can discuss co-authorship, data pipelines, and visiting fellowships. Policy and industry partners can join the pilot data-sharing arrangements underpinning the real-time displacement tracker.

Get in touch

To request the proposal, or to speak with Nitin or Aarti:

“The ladder is being pulled up. The question is who is holding it, and whether we can put it back down.”
— Charu Thukral