The AI Hiring Boom Is Real
India is currently a global hotspot for AI's impact on employment, with some analyses calling it "ground zero" for this transformation. A recent report from Nomura highlighted that AI-related recruitment is significantly outpacing job cuts. Between 2022
and August 2026, India added over 83,100 AI-related jobs, compared to roughly 31,921 positions lost to AI-driven automation and attrition. This net positive impact counters the widespread narrative of massive, immediate job losses. The hiring surge is concentrated in the IT services sector, where companies are explicitly recruiting graduates to meet the high demand for AI skills. Further data from NASSCOM confirms this trend, showing that India has a high share of job postings mentioning AI, a figure that has consistently increased since 2023.
A Contradictory Wave of Anxiety
Despite the robust hiring, a sense of unease is spreading through the workforce, even among those with coveted AI skills. A July 2026 survey of 1,552 Indian professionals by the anonymous platform Blind delivered a surprising finding: 66% of workers in AI and machine learning roles expect layoffs or significant headcount reductions in their teams within the next three to six months. This level of anxiety places AI professionals nearly on par with those in sales and marketing (68%), a field widely considered vulnerable to automation. This challenges the common assumption that an AI-focused career is a guaranteed safe haven. The insecurity isn't driven by official announcements, but by indirect signals like hiring freezes and budget cuts, which employees are increasingly watching as warning signs.
A New, Two-Tier Labour Market
The data suggests AI is creating a divided job market. While there is a net gain in jobs, the nature of these roles is shifting. The Nomura report points to a weakening demand for entry-level workers, as tasks like customer support are increasingly handled by chatbots. Simultaneously, demand is growing for experienced professionals who possess a deeper understanding of business operations. This creates a gap where junior employees face greater uncertainty. A survey cited by Nomura found that 55% of IT firms reported a decline in entry-level hiring, a stark contrast to the 14% that reported a decline in senior-level recruitment. This indicates that while AI creates opportunity, it is not distributed evenly across experience levels.
The Urgent Need for the Right Skills
The core of this issue is a skills mismatch. Employers are struggling to find qualified talent, with 58% citing low applicant volume as a key challenge. The demand is not just for technical AI skills, but for what NASSCOM calls foundational and human-centric capabilities. Companies are now prioritizing demonstrable skills and certifications over traditional degrees, with 40% of employers adopting this skill-focused hiring approach. This shift means the onus is on professionals to continuously learn and adapt. Reports indicate that upskilling into AI can lead to significant salary growth. However, another survey from NASSCOM found that 65% of employees either lack confidence, are still learning, or have no exposure to AI tools, highlighting a critical gap between market demand and workforce readiness.
