Zoho founder and chief scientist Sridhar Vembu has warned that artificial intelligence (AI) and automation could deepen the global employment crisis, urging Indian policymakers to rethink the traditional education-to-employment model.
In a post on social media platform X, Vembu pointed to China’s growing employment challenges among educated youth, saying the situation should serve as a warning for India.
He noted that around 70% of unemployed people in China aged 20 to 24 hold university degrees. Despite its strong manufacturing base, technological capabilities and merchandise trade surplus of nearly $1.2 trillion, China is struggling to generate enough jobs for its college-educated population.
AI Puts Traditional Jobs Under Pressure
Vembu argued that education and economic systems across the world continue to prepare young people for stable, salaried employment. However, these jobs are no longer growing at the pace required and face increasing pressure from automation and AI.
He warned that the situation could worsen as businesses adopt more automated systems and AI-driven technologies.
India’s Graduate Employment Challenge
The warning comes amid concerns about the gap between India’s growing graduate population and the availability of suitable jobs.
According to the Azim Premji University’s State of Working India 2026 report, around 67% of unemployed Indians aged 20 to 29 were graduates in 2023, compared with 32% in 2004. The report also found that graduate employment has not kept pace with the number of graduates entering the workforce.
Vembu Calls for More Entrepreneurship
Vembu suggested that a significant expansion of entrepreneurship and self-employment could help address the changing employment landscape.
He argued that India must move beyond an economic model that relies primarily on large companies providing regular salaried jobs. He urged policymakers to pay attention to the employment challenges emerging in China and prepare for the impact of AI and automation on future job opportunities.
