Nandan Nilekani Says Small Businesses Will Anchor Job Creation as AI Reshapes Employment

Small Businesses Critical for AI-Proof Economy

Nandan Nilekani, non-executive chairman of Infosys, delivered a stark warning about AI's impact on employment while speaking at the Global Fintech Fest 20261

1

2

2

. Large corporations with structured roles and processes face greater vulnerability to AI automation, making job displacement at these companies more likely than at smaller firms. He emphasized that creating an AI-proof economy requires shifting job creation to millions of small businesses rather than relying on a few large corporations3

3

.

Dynamic Roles Resist Automation

The fundamental difference lies in how work is structured. In large companies, tasks and roles follow standardized patterns that make them easier to automate through AI. Small businesses operate differently—employees in these firms perform varied, dynamic tasks that change throughout the day3

3

. This variability makes these positions harder to automate, creating natural protection against job displacement in the AI era. Nilekani stated that billions of jobs across millions of small companies are actually safer than a few million jobs concentrated in large corporations2

2

.

Mass Startup Growth Anchors Employment Future

India's startup ecosystem demonstrates the potential for entrepreneurship-driven job creation. The country had approximately 10,000 startups in 2015, which expanded to around 150,000 in 20252

2

3

3

. Nilekani projects this number could reach 1 million by 2035, with these startups gaining access to diverse capital sources. Both the emerging startup world and traditional small businesses will serve as the employers of the future, he noted2

2

.

Tokenization Expands Access to Capital

Nilekani outlined how technology should level the playing field by giving small businesses access to capital, markets, and capabilities traditionally reserved for larger enterprises2

2

. Tokenization has evolved from an emerging concept to practical applications, with the RBI exploring tokenization of certificates of deposit and both RBI and SEBI working on tokenized corporate bonds. This represents the next layer of India's digital infrastructure evolution, building on systems like Aadhaar and UPI that made identity and payments digitally accessible at population scale2

2

.

Finternet Architecture Enables Asset Portability

Three pilots using the Finternet architecture demonstrate how tokenization can work across different asset classes. One pilot tokenizes cattle by capturing identity, ownership, health, and milk productivity data in digital credentials that can be shared with lenders for credit. Another tokenizes warehouse receipts with details about stored produce quantity and quality. The third pilot focuses on tokenizing loan documents across marketplaces using smart contracts to standardize transactions2

2

. All three use common digital infrastructure designed to work across asset classes and public blockchains.

AI Agents Create Demand for Tokenized Assets

While tokenization handles issuance, AI agents can create demand by executing transactions on behalf of businesses. An AI agent could convert an invoice into a token, identify potential lenders, and offer the asset to them. This combination of tokenized assets on public blockchains supported by agentic transactions gives small businesses capabilities previously available mainly to large enterprises2

2

. A token establishing an asset's identity and value, paired with an AI agent continuously seeking financing or market opportunities, could transform access to capital for smaller firms.

Policy Frameworks Support Digital Asset Evolution

Nilekani's remarks came one day after Maharashtra Chief Minister Devendra Fadnavis announced the state is working to establish India's first state-level legal framework for blockchain-based tokenization of land and other immovable assets under the proposed Maharashtra Digitisation and Exchange of Land Token Asset (DELTA) Act2

2

. This regulatory development signals growing institutional support for tokenization as a tool to expand financial access and economic participation across India's business landscape.