New Delhi, Feb. 27 -- Artificial intelligence will disrupt India's services sector, particularly the software companies, but fears of a doomsday scenario are exaggerated, former Reserve Bank of India Governor Raghuram Rajan said on Friday, playing down concerns of a large-scale jobs crisis due to rapid technological advancement.

Speaking in an interview with Bloomberg Television, he acknowledged that AI poses a challenge, but stressed that "the Indian services story can still persist in many other areas outside of software."

"Things take time. The firms that are not technology-savvy will take more time. That is it," Rajan, a professor at the University of Chicago Booth School of Business, further added.

His remarks come at a time when ...