More Creation Than Destruction
Recent reports offer a surprising headline figure: AI is currently creating more jobs in India than it is eliminating. A widely cited Nomura report analyzing employment cases from 2022 to August 2026 found that India recorded 83,100 AI-related hires,
significantly outpacing the 31,921 layoffs linked to the technology. This translates to roughly 2.6 new AI-related roles for every one that was displaced. While this offers a dose of optimism, the story doesn't end there. These aggregate numbers mask a deeper, more structural shift in the labour market. The economists behind the study have called India “ground zero” for understanding AI's employment impact due to its massive tech services and outsourcing industry.
The Great Skills Mismatch
The critical challenge highlighted by the data is that the workers losing their jobs are rarely the ones being hired for the new roles. Many of the job losses are concentrated in roles susceptible to automation, such as customer support teams being replaced by chatbots and routine back-office processing. In contrast, the new hires are overwhelmingly for specialised technology roles, with over 90% of new AI jobs appearing in the tech sector. A displaced customer support representative cannot simply step into a machine learning engineering position, which often requires advanced degrees and specific technical expertise. This creates a significant skills gap, where demand for highly skilled AI talent soars while the traditional entry-level pyramid of the IT industry begins to shrink. NASSCOM data shows a staggering demand-supply gap of 51% for AI and machine learning roles, with similar shortages in cloud and cybersecurity.
The Rise of the 'AI-Augmented' Professional
Beyond the binary of job creation and loss lies the most significant trend: job transformation. A study by Nasscom and Indeed found that a massive 86% of employers have seen AI impact job roles and responsibilities, with 35% reporting significant changes. This is the “mixed picture” in action. It’s not just about becoming an AI specialist; it's about becoming an AI-augmented professional. Roles in marketing, finance, and HR are not disappearing, but they are evolving to require AI literacy. The World Bank found that in India, a higher percentage of jobs (15.6%) were complementary to AI rather than susceptible to outright replacement (6.4%). The future belongs to the domain expert who can effectively direct, verify, and collaborate with AI tools to enhance their productivity and decision-making.
From Job Titles to Core Competencies
In this shifting landscape, fixating on a specific job title is becoming less important than acquiring a portfolio of durable skills. The fastest-rising skills globally include analytical and creative thinking, resilience, and a commitment to lifelong learning. In India specifically, skills like problem-solving, code review, and strategic thinking are gaining prominence alongside AI literacy. The traditional “hire-and-train” model, where companies onboarded fresh graduates for basic tasks, is under pressure as automation handles that foundational work. Companies are now prioritising candidates with demonstrable, ready-to-deploy skills. This puts the onus on individuals to proactively build competencies. According to a Deloitte-Nasscom report, two out of three Indians are already planning to learn at least one new digital skill, with AI and ML topping the list.
