More Jobs Created Than Lost
Recent analysis provides a surprisingly positive headline number: AI is currently creating more jobs in India than it is eliminating. A report from Nomura, which analyzed employment trends from 2022 to August 2026, found that India recorded 83,100 AI-related
hires against 31,921 layoffs linked to the technology. This translates to roughly 2.6 new AI-related jobs for every role that was impacted or displaced. This trend positions India as a key case study—or "ground zero" as economists termed it—for understanding AI's real-world employment effects. While these figures are based on reported corporate cases and not an exhaustive census, they indicate a clear direction: the AI revolution, at least in its current phase, is one of net job creation.
The Great Skill Mismatch
The complexity of the jobs picture lies underneath the positive numbers. The core issue is that the workers losing their jobs are rarely the same ones being hired for new AI roles. Most job losses are concentrated in support and back-office functions that can be automated by tools like chatbots. In contrast, the hiring boom is for specialised IT and data science roles that require specific, high-demand skills. This has created a two-tier labour market: reduced demand for entry-level workers in traditional roles, and surging demand for experienced professionals who can build, manage, and apply AI systems. The result is a widening skills gap, with a NASSCOM report noting that nearly 51% of AI and machine learning roles remain unfilled. Employers report struggling to find talent with the right applied skills, creating a major friction point in the market.
The New In-Demand Roles and Skills
The demand is shifting from generalist coders to specialists. Roles like Machine Learning Engineer, Generative AI Developer, and MLOps Engineer are seeing the highest growth and salaries. LinkedIn's CEO recently noted that hiring for AI engineering roles in India is growing at a staggering 51% year-on-year. Beyond titles, the most sought-after skills have also evolved. Experience with Retrieval-Augmented Generation (RAG) and vector databases has become a key requirement, reflecting a focus on production-ready generative AI systems. While Python remains a fundamental skill, the expectation has moved beyond basic scripting to building functional data pipelines. Crucially, these skills are now being sought in non-technical roles as well, with marketing, product, and operations positions increasingly requiring basic AI literacy.
A Shift in Corporate Strategy
Companies are fundamentally changing how they build their workforce. The traditional Indian IT model of hiring fresh graduates en masse and training them on the job is under pressure. With AI automating many foundational tasks, businesses are prioritising candidates who already possess specialised expertise. This shift is visible in how roles are being redesigned. A study by NASSCOM and Indeed found that 86% of employers have seen AI impact job responsibilities, with 35% witnessing significant transformation. At the same time, there's a growing recognition that human-centric skills—like critical thinking, client management, and team leadership—are more valuable than ever, as they represent the capabilities AI cannot replicate.
