More Jobs Created Than Lost
The headline figure from a recent Nomura report offers a dose of optimism: for every job lost or impacted by AI in India, 2.6 new AI-related roles are being created. The study identified 83,100 AI-related hires compared to 31,921 layoffs or attrition
linked to the technology. This suggests that, for now, AI is a net job creator. This growth is significant, with LinkedIn's CEO noting a 51% year-on-year increase in AI engineering roles alone in India. This boom runs counter to the prevailing narrative of mass unemployment, indicating that India is in a phase of rapid role creation fueled by technology.
A Tale of Two Labour Markets
Beneath the positive top-line number lies the crux of the “mixed picture”: the jobs being created are not the same ones being lost. The Nomura report highlights the emergence of a two-tier labour market. Demand is surging for experienced, highly skilled professionals who can develop, manage, and apply AI. Simultaneously, demand for certain entry-level roles is declining. An ICRIER survey noted that 55% of IT firms reported a drop in entry-level hiring as tasks like customer support, data processing, and quality assurance testing are increasingly automated by tools like chatbots. The workers displaced from these roles rarely have the skills to transition directly into the new high-tech positions being created.
The Sectors Driving AI Hiring
The hiring surge is heavily concentrated in specific sectors. Unsurprisingly, the technology sector accounts for over 90% of the new AI-related jobs. IT services giants and tech startups are aggressively hiring for roles like Machine Learning Engineers, Data Scientists, and Generative AI Developers. The Banking, Financial Services, and Insurance (BFSI) sector is another major driver, responsible for 22% of new AI posts as companies deploy AI for fraud detection, risk management, and customer operations. Meanwhile, financial services has also seen a significant share of job cuts due to automation, underscoring the dual impact of AI within the same industry.
The Urgent Demand for New Skills
This workforce transformation has created a massive demand-supply gap for talent. NASSCOM reports a shortfall of around 51% for AI and Machine Learning roles, with over 290,000 open positions. For jobseekers, this points to a clear path forward: upskilling. The most in-demand technical skills include Python, SQL, machine learning frameworks like TensorFlow, and cloud platform knowledge. Beyond pure tech, there is a rising need for roles like AI Product Managers and Strategists who can bridge the gap between technical teams and business goals. For non-technical professionals, skills in prompt engineering, data literacy, and using AI-powered tools are becoming essential.
What This Means for Jobseekers
The era of securing an entry-level job with a generic degree and learning on the job is fading. Employers are shifting to a 'skills-first' approach, prioritizing candidates who can demonstrate practical abilities through projects, internships, and certifications. For freshers, this means the pressure is on to acquire applicable skills before entering the workforce. A strong AI skillset can dramatically impact earning potential, with data showing that freshers with these abilities can command salaries 30-60% higher than their peers. The message for the Indian workforce is clear: AI is not just a threat to be feared, but a powerful wave of opportunity for those prepared to adapt and learn.
