Telangana CM Revanth Reddy Proposes People Credits Tax on AI Firms at Harvard Symposium

Hyderabad: Speaking remotely at the Maiden AI Symposium hosted by the Harvard Kennedy School, Telangana Chief Minister A. Revanth Reddy laid out an ambitious and somewhat provocative vision for managing the AI revolution—one that blends regulation, reskilling, and aggressive economic expansion.Positioning himself as the first Indian keynote speaker at the event and drawing from his association as an HKS alumnus, Reddy described artificial intelligence as “mankind’s greatest invention,” but cautioned that its impact could be deeply disruptive, especially for white-collar jobs that form the backbone of Hyderabad’s economy. He framed AI as a double-edged sword—capable of driving unprecedented productivity while simultaneously threatening large-scale job displacement.At the heart of his proposal is a novel “People Credits” system. Borrowing the logic of carbon credits, Reddy suggested that highly valued AI companies should be taxed for the jobs their technologies displace. The idea, he argued, is rooted in fairness—if companies gain massive valuations by automating human work, a portion of that value should flow back to society and those affected.Alongside this regulatory push, the Chief Minister unveiled plans for a futuristic “Bharat Future City,” which will include a dedicated AI hub designed to attract Global Capability Centres. The proposed ecosystem will feature AI data centres powered entirely by green energy, positioning Telangana as a global destination for next-generation tech infrastructure.Acknowledging that disruption is inevitable, Reddy stressed the urgency of large-scale reskilling. He announced plans to build a robust skilling ecosystem in partnership with leading global institutions, including Harvard, aimed at preparing workers—particularly those in entry-level and cognitive roles—for an AI-driven future.At the same time, Telangana is looking beyond tech to hedge against AI-led job losses. The state plans to aggressively expand sectors less vulnerable to automation, such as tourism, green energy, electric vehicles, and infrastructure. Reddy also reiterated a strategic push to develop a strong “China+1” manufacturing base, positioning Telangana as an alternative global supply chain hub.While he acknowledged that AI is more likely to augment professions like medicine, law, and architecture rather than replace them entirely, Reddy warned of the unique risks posed by a technology that can operate with a degree of autonomy and intelligence beyond human capabilities.Closing his address, he pitched Telangana as a ready destination for global investment. Highlighting that the state already hosts over 100 Fortune 500 companies, he invited tech leaders to invest in Hyderabad’s AI, green energy, and infrastructure sectors—while expressing hope that global conversations like this symposium will lead to a more ethical and balanced framework for governing AI worldwide.



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