A prominent Dubai real estate tycoon delivered a stark warning about artificial intelligence’s impact on India’s economy during the 2026 World Economic Forum in Davos, Switzerland. Hussain Sajwani, founder and chairman of Damac Group, predicted that AI will replace 80% of jobs in sectors where India has built its economic foundation through outsourcing.
AI threatens to eliminate 80% of India’s outsourcing jobs, warns Dubai billionaire Hussain Sajwani at Davos 2026.
Sajwani, who recently announced a $20 billion investment in US data centers, identified specific occupations facing immediate displacement. Accountants, nurses, administrative workers, routine programmers, manual testers, and customer support representatives all fall within AI’s crosshairs. These positions share a common characteristic: they involve repetitive tasks that AI systems can perform faster and cheaper than human workers.
India’s vulnerability stems from its reliance on exporting labor to international clients. Millions of Indian workers serve companies abroad, creating an outsourcing-dependent economy that faces potential disruption. As AI capabilities expand, companies will reduce their need for offshore teams.
The economic mechanism is straightforward: automation eliminates demand for traditional outsourced services, and businesses relocate operations to AI-enabled infrastructure rather than maintaining large human workforces.
The global AI leadership race intensifies this challenge. The United States and China lead AI investment and development, while smaller economies like the UAE contribute but lack commanding positions. Countries embracing AI gain significant competitive advantages, whereas nations hesitating on adoption risk falling behind economically. European strict regulations may disadvantage the region relative to US and China.
Sajwani emphasized that AI transformation will change the world “10 or even 100 times more” than the Internet did. He drew parallels to the Industrial Revolution, noting how technology shifts economic power between regions. The gap between AI-adopting and non-adopting nations will mirror historical economic divides. The billionaire warned that Europe’s regulatory approach could cause the continent to fall further behind in the competitive AI landscape.
However, countermeasures exist. India’s large talent base provides foundation for workforce transition. High AI skill penetration enables shifting from labor exporter to innovation hub. Training programs in AI and digital skills can cushion job market impact.
Investments in data centers and local computing infrastructure support economic resilience, offering pathways to higher-value employment opportunities for workers who acquire relevant technical skills. Analysts estimate that up to half a million jobs could be affected over the next few years if traditional tasks continue being automated.
IT outsourcing trends show that hybrid models and ITSM integration can help companies transition and enhance operational performance during technological shifts.
