Emergence of Industry 5.0; India’s pathway for transformation

In 2019, Magnus Carlsen, the reigning world chess champion expressed amazement at how Google’s DeepMind AlphaZero used unconventional strategies in a chess game that human players might not consider immediately. In 2020, IBM’s Chief Executive Officer, Arvind Krishna, stated that AI and automation could replace around 30% of employees in areas where routine tasks could be automated. Recently, Bill Gates on ‘Gates Notes’ described how Newark schools are pioneering the use of AI in education through Khanmigo, an AI-powered tutor that personalizes teaching and assessment according to students’ pace and understanding.

At the outset, these instances would make one feel apprehensive about the future utility of human skills and knowledge. However, this is not the complete story. Carlsen did not view AI as a rival but rather as a tool to enhance human strategy and creativity in the game. Similarly, while AI and automation may replace routine roles, human attributes like creativity, problem-solving, critical thinking, collaboration, and empathy, remain irreplaceable. In education, AI can free teachers from repetitive tasks, allowing them to focus on nurturing the creativity, critical thinking, and emotional intelligence of students.

While Industrial Revolution 4.0 unveiled the potential of digital integration and automation, Industry 5.0 brings human ingenuity back to the forefront. Anannya Saraswat from APAC News Network sheds light on how India’s rich industrial heritage and technological prowess can be best utilized for it to transform into an Industry 5.0 economy.

The Shift in Focus

The primary difference between Industry 4.0 and Industry 5.0 lies in their focus on the role of human involvement in industrial development. While Industry 4.0 emphasizes on integration of digital technologies into industrial processes, Industry 5.0 goes beyond just efficiency and speed and reintegrates human elements into the industrial process.

The major focus areas of Industry 5.0 are:

• Human-Machine Collaboration: Industry 5.0 tries to put an end to the current debate about whether machines will replace human beings at work. It shifts the focus to human-machine collaboration where the efficiency and precision of machines, particularly AI and automation, is leveraged to enhance skills of humans such as creativity, problem-solving, and critical thinking. Take for example the Unified Lending Interface (ULI) of the Reserve Bank of India where AI integration is helping in the collation of applicant data from various structured and unstructured sources such as bank statements, GST returns, income tax filings, and digital transaction histories. This enables faster and more accurate analysis of risk factors that might not be immediately evident to human analysts. The aggregated data is then used to generate credit scores and predict the likelihood of loan repayment by a borrower, thereby ‘supporting’ the credit officers in their decision-making process.
• Human-Centric Innovation: Under Industry 5.0, products and services are customized to meet individual needs. Here, technology supports and augments human roles rather than replacing them. ‘Bhashini’ is a prime example of this approach. A government of India initiative, Bhashini is a platform designed to bridge linguistic barriers and make digital services accessible on a large scale. It enables real-time translation and voice recognition across multiple Indian languages, allowing users to access digital services, educational content, and government schemes in their native language. From the workforce point of view, the platform is aiding content creators in producing localized content in various languages, ensuring that the content is relatable to a broader audience.
• Sustainability and Employee well-being: Industry 5.0 aims to balance technological advancements with social and environmental responsibility. Several Indian organizations have now started putting more emphasis on their Environment-Sustainability-Governance (ESG) initiatives including achieving carbon neutrality, resource conservation efforts, providing comprehensive benefits to employees, ensuring continuous skill development for their career advancement, and promoting work-life balance.
• Personalization: Industry 5.0 aims to address the unique demands of individual consumers by offering highly customized and personalized services. Higher educational institutions, for example, have started embracing student-centric approaches to enhance learning outcomes. Universities across India have begun to introduce personalized learning models such as a customized curriculum aligning with students’ interests and career goals, flexible learning modules, personalized mentorship programs, etc.

The Need

While using digital platforms, many of us have encountered situations where over-automation of customer support has led to unnecessary confusion. The AI chatbot feature, adopted by several platforms, is well capable of handling routine inquiries and transactions. But things become troublesome when queries get more complex. In such cases, chatbots often provide generic responses, failing to understand the customer’s issue at hand, and providing irrelevant information. Consequently, customers have expressed feeling neglected, specifically for issues that require empathy and understanding. All of this emanates from the lack of access to a human agent for a more nuanced approach.

Considering the lack of empathy, transparency, and human touch, a shift from Industry 4.0 to 5.0 becomes essential as global economies evolve by combining the strengths of machines and humans.

In this context, let us understand why the time is right for India to transform into an Industry 5.0 economy.

The Time is Now!

As India steadily advances in various aspects of industrial development, the time is ideal for the country to transition into Industry 5.0. Several factors highlight India’s potential and readiness:

• Digital Infrastructure and Technological Advancements: India is witnessing a strong wave of internet access expansion, increased mobile penetration, and digital literacy. Government initiatives such as ‘Digital India’ strengthen the digital backbone of the country. In addition, numerous start-ups and tech companies are working on advanced AI solutions. These factors lay a strong foundation for India to achieve Industry 5.0 status.
• Young, Dynamic, and Skilled Workforce: India has one of the youngest populations in the world with a median age of around 29 years. The Indian youth workforce is adaptable, eager to learn, and capable of driving innovation. In addition, the number of skilled professionals in engineering technology and data science is growing at a great pace. This puts India in an advantageous position when it comes to transforming into an Industry 5.0 country.
•  Cost-effective Labor Market: India has an efficient and cost-effective labor market as compared to developed countries. This allows Indian companies to experiment with Industry 5.0 technologies without much financial stress that most developed countries face.
• Geopolitical Position: India’s membership in multilateral organizations like BRICS and G20, and its growing ties with technologically advanced nations such as the US, Japan, and the EU provide access to a multitude of resources and expertise. This can ease transformation into Industry 5.0 through partnerships and knowledge sharing.
• Supportive government policies: Initiatives such as ‘Skill India’, ‘Make in India’, ‘IndAI Mission’, and ‘National Quantum Mission’ show the government’s unwavering resolution in creating an ecosystem for human and economic development. Moreover, incentives for research and development and growing support for start-ups and small and medium enterprises are a clear indication that the Indian state is ready for the next big thing!

India is already on its path to becoming an Industry 5.0 country in bits and pieces. However, there is a need for a multi-faceted approach to realize a full-fledged economic transformation.

Addressing the ‘How’ question

While India has already made significant strides towards Industry 5.0, some of the key measures that need to be taken to ensure a more focused approach are:

• Developing a nationwide policy framework: The current sectoral policies and initiatives adopted for Industry 5.0 transformation should be advanced into a comprehensive strategy for all the key sectors in the economy. This will aid in developing capabilities and leverage the potential of a sectorally skilled workforce to drive national-level transition.
• Education and Skill Development: Educational institutions need to include STEM (Science-Technology-Engineering-Mathematics) in their curriculum at an early stage to develop students’ interest and knowledge in Industry 5.0-related topics such as AI, machine learning, robotics, data science, etc. An interdisciplinary approach should be encouraged to foster innovation. In addition, skill development programs should be designed to inculcate industry-relevant skills including digital literacy, man-machine collaboration, and advanced manufacturing techniques.
• Enhancing Academia-Industry Collaboration: Industry experts and higher educational institutions should partner to develop joint research projects, vocational courses, and innovation labs to make the future workforce ready for industrial transformation. Universities should regularly update their curricula based on industry feedback and emerging trends.
• Ensuring a cultural shift: All the relevant stakeholders must make an effort to shift the mindset of the general public to see technology as an enabler rather than a threat.

The Way Ahead

As India enters into a new phase of development, it also becomes necessary to ensure that the fruits of Industry 5.0 advancements reach all segments of society. Only an inclusive approach can facilitate India in harnessing its full demographic potential, an idea that is central to Industry 5.0 transformation. Efforts should be made to bridge the digital divide, foster social equity, and create a more resilient workforce, thereby treating human beings as an end in themselves and not as a means to achieve something else.