More Jobs Created Than Lost, But There's a Catch
On the surface, the latest numbers offer a dose of optimism. A recent report from Nomura found that for every AI-related job lost in India, 2.6 new ones are created. Specifically, India saw approximately 83,100 AI-related hires against about 31,921 layoffs
linked to the technology, making it a net positive. This positions India as 'ground zero' for AI's employment impact in Asia. However, the data reveals a critical mismatch: the workers losing jobs in areas like customer support, which are being replaced by chatbots, are rarely the same individuals getting hired for specialised AI engineering roles. This highlights a growing skills gap rather than a simple one-to-one job replacement.
The Paradox of the AI Worker
One of the most surprising revelations comes from a July 2026 survey by the professional networking platform Blind, which found that those working directly in AI are not immune to job insecurity. In fact, 66% of AI and machine learning professionals in India expect layoffs in their teams within the next three to six months. This level of anxiety is nearly as high as that in sales and marketing (68%), a field widely considered to be at risk of automation. This challenges the common belief that an AI-focused role is a guaranteed safe harbour. Instead, it suggests that even the creators of AI tools feel vulnerable in a rapidly shifting landscape.
Who Feels Secure? The Surprising Answer
Counterintuitively, the same Blind survey showed that traditional engineering and data analytics professionals feel more secure than their AI-specialist counterparts. Only 24% of engineers reported that layoffs were 'very likely,' the lowest of any function surveyed. Similarly, data and analytics teams appeared more optimistic, with only 51% considering their teams at risk. The sentiment suggests that professionals whose roles are being augmented by AI, rather than those building the AI models from scratch, currently perceive themselves to be in a stronger position. Workers are also reading subtle cues, citing hiring freezes (27%) and budget cuts (24%) as bigger warning signs than formal announcements.
A Tale of Two Labour Markets
The data points to the creation of a two-tiered labour market. AI is reducing the demand for entry-level workers who perform routine tasks. One survey noted that 55% of companies in India's IT sector reported a decline in entry-level hiring. At the same time, demand for experienced professionals with deep business context and specialised AI skills is soaring. This trend is visible in salary benchmarks, where an AI professional with three to six years of experience can earn a median salary nearly double the broader market rate. The result is a workforce where senior, skilled workers are in high demand, while those just starting their careers face significant hurdles.
The Reskilling Imperative
The clear message from all findings is the urgent need for upskilling and reskilling. While one study found 68% of employees expect AI to automate their jobs within five years, 63% also believe it will create new roles. Many organisations are responding, with 32% of entities in one survey expecting AI to drive significant job transformation and reskilling rather than outright job cuts. The demand for new skills is immense. Reports indicate a significant talent gap, with some estimates suggesting there is only one qualified engineer for every 10 open Generative AI roles. This skills shortage, not a lack of jobs, is emerging as the primary challenge for India's workforce.
