Pharma's AI Future

In this AI future, demographics matter less — and innovation, capital, and agility matter more. Thinking of this, and how casually the industry takes it, blows my mind!

Over the last couple of years, all we have heard of is AI and how it will ‘disrupt’ everything. Every conference I attend, every executive I speak to is all about artificial intelligence being the disruptor. So I wonder: this advance in AI is expected to increase productivity exponentially. This means that India can produce a lot more with a lot less, hence ideally allowing humans to work less and focus on more interesting pursuits. Bill Gates said that he expects 2-day work weeks as AI does the heavy lifting.

In countries like India which depend on large labour forces, a majority of them being unskilled, will this result in mass layoffs and unemployment? Will India lose its demographic dividend in the race with technology? On the other hand, will countries with rapidly aging populations no longer be at a disadvantage? What about zero population growth that Elon Musk worries about?

Do you see your companies prepare for this future? Are these topics discussed in your townhalls? If not they should! Because everyone of us wants to know how industries like pharma, which employ tens of thousands of medium-skilled people, prepare for the future?

Here’s what I think.

India’s advantage has historically been low-cost labour, especially in sectors like textiles, construction, basic manufacturing, pharma operations, and even parts of IT (BPOs, etc.). If AI and automation allow companies to do the same or better with half or fewer workers, there will naturally be displacement. This isn’t a future problem — it’s already started in sectors like banking (chatbots replacing call centres) and manufacturing (smart factories).

But unlike the West, where labour is expensive and thus automation is an economic no-brainer, India’s labour cost is still very low — meaning there will still be friction against rapid full automation in many sectors. Companies will automate selectively where the ROI is very high.

India’s "demographic dividend" — a large, young working-age population — was supposed to be a major advantage. However, if jobs requiring minimal skill disappear faster than new industries create opportunities, then the dividend could turn into a burden — unemployed, restless young populations can create serious political and economic instability. Reskilling becomes critical. If the average Indian worker doesn’t move up the value chain (tech-savvy, creative industries, caregiving, specialized manufacturing, etc.), the dividend is at risk.

If demographics do not provide dividend, what about aging societies? Will countries with aging populations (Japan, Germany, etc.) no longer be at a disadvantage? AI and robotics could neutralize labor shortages in aging societies. A country like Japan, which struggles to find young workers, may use AI and robotics to maintain productivity without needing large immigration. Germany, which has been aggressively automating its Mittelstand (small manufacturers), could sustain industrial strength despite shrinking working-age populations.

In this AI future, demographics matter less — and innovation, capital, and agility matter more. Thinking of this, and how casually the industry takes it, blows my mind!

How then, should industries like pharma, that employ large numbers of low-skilled workers, prepare? I have tried to create a broad timeline for how AI could impact India’s pharma sector workforce over the next 15 years, assuming current trends

Summary of Major Shifts from Current Trends

What Pharma Companies Should Start Doing Now

• Launch reskilling academies in-house or partner with edtech.

• Shift CSR funding toward technical education and digital literacy in local communities.

• Set up AI ethics and human impact departments early.

• Think of AI as augmentation, not replacement — humans are needed at decision points.

In short: If you help your people move up the ladder, they will help your company move up the AI curve.

Here’s a "Top 10 Books to Prepare for the AI Future" list — carefully picked to match the mindsets we just discussed: adaptability, resilience, creativity, and strategy.

Bonus Tip:

Start with just one book that excites you the most right now — don't try to "read everything at once." Slow, deep reading builds lasting change. Would you also like a customized reading plan or a strategy on how to prepare your teams for the onslaught of AI? I can quickly create one if you want! Look me up.