When economists meet with the finance minister ahead of the Budget, they normally discuss growth, fiscal policy, deficits, and investment. It was no exception on Wednesday, when the majority of the debate with FM Nirmala Sitharaman saw recommendations to encourage private investment, job development, fiscal conservatism, while also monitoring total debt and managing food inflation.

Artificial intelligence, like most talks these days, was brought up throughout the conference, with at least one economist mentioning its expanding use and the potential impact, particularly on jobs. Another analyst is claimed to have mentioned the prospect of implementing a "robot tax" to reskill and rehabilitate displaced workers.

The advice comes just days after the IMF issued a study that, while acknowledging that AI might raise total employment and incomes, cautioned that technology can "put large swaths of the labor force out of work for extended periods, making for a painful transition." While opposing the implementation of a "robot tax," it proposed a review of labor policy and social protection systems.

It advocated for a stronger emphasis on skilling and sector-based training, as well as expanding the coverage and generosity of unemployment insurance and exploring various kinds of pay insurance. The research suggested that governments reevaluate how they build their present corporate tax structures to incentivize automation investments.

In an interview on Tuesday, IMF first deputy MD Gita Gopinath indicated that developing nations face more problems since they lack significant social safety nets.

"When you look at the percentage of young people who are not in school, working, or undergoing any type of training, it is far higher than in established nations. This means that they will have a more difficult time benefiting from or adapting to the adjustment. "These are areas where developing countries will need to invest more in order to provide a stronger digital infrastructure, as well as more education and training so that they can benefit from this technology," she stated.

Economists believe the entire implications of how the technology will play out are yet unknown, but it will result in significant productivity improvements for the economy. Furthermore, they suggested it might lead to the development of new types of jobs, however, the government may need to plan to deal with the obstacles. While any Budget measures may not be implemented at this time, AI may be included in the Economic Survey, which is scheduled to be submitted ahead of next month's Union Budget.