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Telangana Chief Minister Revanth Reddy on Friday, March 27, said the government is considering policies to tax Artificial Intelligence (AI) companies to support people who may lose jobs due to automation. Speaking virtually at an AI symposium hosted by Harvard Kennedy School, Reddy described AI as a “double-edged sword” and cautioned that its risks could outweigh benefits if not regulated early.
He said the government is exploring a model similar to pollution control policies, where industries pay carbon credits. “We will try to introduce laws so AI firms can be taxed for ‘people credits’ to compensate those affected by job losses,” he said.
CM Revanth argued that companies with massive valuations should contribute to society if their technologies displace workers. At the same time, he noted that AI is likely to transform jobs rather than eliminate them, as seen in past technological changes.
However, he warned that entry-level hiring may decline but added that this would boost overall productivity. “Higher productivity can be achieved by using a smaller workforce,” he said.
The Chief Minister also highlighted plans for “Bharat Future City” near Hyderabad, which will include a dedicated district for AI. He said the proposed AI City aims to serve as a hub for Global Capability Centres focused on AI and its applications.
“I plan to build Hyderabad to maximise AI potential for the world using the city’s human resources and infrastructure. On a war footing, industries like global tourism, sustainability, green energy, and electric vehicles will be scaled up to include more blue-collar work that AI cannot replace,” he added.