From Replacement to Realignment
The narrative of robots taking over has been compelling, but recent figures suggest a different reality is unfolding. A landmark report from Nomura indicates that artificial intelligence is currently a net job creator in India. The data shows the creation
of approximately 83,100 new AI-related roles, set against 31,921 documented layoffs and attritions linked to the technology. This means for every job impacted by AI, roughly 2.6 new ones are being generated. This key finding reframes the entire discussion. The focus is no longer a simple question of human versus machine. Instead, it’s about a fundamental realignment of the job market. Experts now consider India “ground zero” for understanding AI’s global employment impact, precisely because its massive workforce and role as a global back-office hub make these shifts so pronounced. The story is not one of scarcity, but of transformation.
A New Two-Tier Job Market
While the top-line number is positive, it conceals a crucial friction point: the people losing jobs are often not the ones being hired for new roles. The data reveals the emergence of a two-tier labour market. On one side, demand for entry-level workers is weakening, as routine tasks in customer service, back-office operations, and basic coding are increasingly automated. One survey found 55% of IT firms reported a decline in entry-level hiring. On the other side, demand is exploding for professionals with specialised, high-end AI skills. Companies are moving away from the traditional model of mass recruitment and on-the-job training, instead prioritising candidates who arrive with ready-to-deploy expertise. This has created a fierce competition for talent that can build, manage, and implement complex AI systems.
The Skills Now in Demand
So, what are these coveted skills? The demand is highly specific. At the top of the list are Machine Learning Engineers, who remain the most hired-for role. Closely following are Generative AI and Large Language Model (LLM) Developers, a field that has seen exponential growth. Other critical areas include MLOps (Machine Learning Operations), which focuses on deploying and maintaining ML models at scale, Natural Language Processing (NLP), and Computer Vision. But it’s not just about coding. As AI becomes more integrated into business, there is a growing need for roles that bridge the gap between technology and strategy. AI Product Managers, who guide the development of AI-powered features, and Prompt Engineers, who specialize in crafting effective instructions for generative AI, are becoming mainstream hires. These roles often command salaries 35-45% higher than traditional software development jobs for equivalent experience.
The Widening Skills Chasm
The surge in demand has created a significant challenge: a massive skills gap. NASSCOM estimates that India will need over 1 million AI professionals by 2027, but the current trained supply covers less than 20% of that demand. Another study suggests that around 44% of the entire Indian workforce may require reskilling to stay relevant in an AI-driven economy. This talent shortage is now the primary concern for employers, with over 80% reporting struggles in finding the right people. According to LinkedIn, AI engineering roles in India are growing at a staggering 51% year-on-year. This chasm between demand and supply is the new central conflict in India's AI story. The conversation is no longer about the threat of job loss, but about the monumental task of upskilling a nation at an unprecedented speed.
An All-Sector Mandate
This transformation is not confined to the tech sector. While IT services are at the forefront, other industries are rapidly becoming major employers of AI talent. India's Global Capability Centres (GCCs) are evolving into AI powerhouses, with estimates showing that nearly two-thirds of new roles created in these centres in 2026 require AI or data science skills. Sectors like Banking and Financial Services (BFSI), healthcare, manufacturing, and retail are also aggressively hiring AI specialists to innovate and improve efficiency. This broad-based adoption signals that AI literacy is no longer a niche requirement for software developers but a core competency that will be expected across a wide range of industries and functions in the near future.
