A new report reveals a significant shift in the hiring landscape driven by artificial intelligence. According to a study by ICRIER supported by OpenAI, AI adoption is leading firms to moderate their hiring efforts. This moderation is primarily concentrated at the entry level.
Mid and senior-level hiring remains stable, the report notes. Researchers point out this trend aligns with broader post-pandemic patterns in the IT industry. It cannot be attributed to AI adoption alone.
The study titled ‘AI and Jobs: This Time Is No Different’ offers a comprehensive firm-level assessment. It surveyed 650 IT firms across 10 Indian cities between November 2025 and January 2026. The findings highlight a reshaping of hiring priorities.
A striking 63 percent of firms reported increased demand for specific skills. There is a growing premium on candidates with domain expertise combined with AI or data skills. This points to the rising value of hybrid skill sets as AI integrates into core workflows.
Interestingly, roles most exposed to AI are seeing strong demand growth. Software developers and database administrators are prime examples. The report indicates generative AI acts as a productivity-enhancing complement, not a substitute, for technical work.
Productivity gains are a major theme. Across over 1,900 business divisions most affected by AI, productivity increases significantly outnumber declines. The data shows a clear positive impact.
The ratio is compelling. Divisions reporting higher output with stable or smaller teams outnumber those with declines by 3.5 to 1. Nearly one-third report both increased output and reduced costs. This suggests AI enables efficient scaling without major job cuts.
Firms are actively supporting this transition. More than half of surveyed companies are already running AI awareness or training initiatives. An additional 38 percent plan to implement such programs soon.
However, training coverage faces limitations. Only a small share of firms report that over half their workforce received AI-related training in the past year. Scaling upskilling efforts remains a challenge.
Several key obstacles hinder broader training adoption. Firms cite difficulty finding qualified trainers and high costs with uncertain returns. Ethical, legal, and organisational readiness concerns also play a role.
The adoption of AI is clearly a double-edged sword for the job market. While it tempers entry-level hiring, it boosts demand for specialized, hybrid roles. The technology’s primary function appears to be augmenting human capability.
This shift underscores the importance of continuous learning and adaptation. The workforce must evolve alongside technological advancement. The future belongs to those who can blend domain knowledge with technical AI proficiency.
The report provides a nuanced view of a transforming economic landscape. It captures the complex interplay between automation, productivity, and employment. The journey of AI adoption in India is just beginning.