<h1>AI's Impact on Labor Markets: Economic Survey Urges Tax on AI Profits and Educational Reforms to Mitigate Effects</h1> The Economic Survey warns that the global impact of AI on labor markets will be particularly severe for India due to its large population and low per capita income. It stresses the need for companies to manage AI integration sensitively to avoid increased demands for policy intervention and fiscal resources. The Survey suggests taxing corporate profits from AI-driven labor replacement and calls for regulatory adjustments and educational reforms to align AI use with societal values. It advocates for mechanisms to help workers adapt and emphasizes the importance of a coordinated effort among government, private sector, and academia to distribute AI-driven productivity gains.