Artificial Intelligence (AI) adoption has led firms to moderate hiring, primarily at the entry level, according to a recent report. A study by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI, states that AI adoption is reshaping hiring priorities across the sector.
Growing demand for hybrid AI and domain skills
The study found that 63 per cent of firms reported increased demand for candidates with domain expertise along with AI or data skills. This reflects a growing premium on hybrid skill sets as AI becomes integrated into core workflows.
Titled ‘AI and Jobs: This Time Is No Different’, the report is among the most comprehensive firm-level assessments of generative AI adoption in India to date. Conducted between November 2025 and January 2026, the study received responses from 650 IT firms across 10 Indian cities.
Entry- level hiring moderates, mid and senior roles stable
According to the report, firms have reported a modest moderation in hiring, primarily concentrated at the entry level, while hiring at mid and senior levels has remained stable. Researchers noted that this moderation aligns with broader post-pandemic trends in the IT industry and cannot be attributed solely to AI adoption.
AI as a productivity enhancer, not a job substitute
The report highlights that roles commonly perceived as most exposed to AI—such as software developers and database administrators—are among those experiencing the strongest growth in demand.
This indicates that generative AI is largely functioning as a productivity-enhancing complement to technical and analytical work, rather than a substitute.
Across more than 1,900 business divisions identified as being most affected by AI, productivity gains significantly outnumber declines.
On average, divisions reporting higher output with stable or reduced team sizes outnumber those experiencing productivity declines by a ratio of 3.5 to 1. Nearly one-third of divisions reported both increased output and reduced costs, suggesting that AI is enabling firms to scale output more efficiently without corresponding reductions in employment.
AI training efforts underway, but coverage limited
More than half of the surveyed firms reported that they are already supporting AI adoption through awareness or training initiatives, while an additional 38 per cent plan to introduce such measures.
However, training coverage remains limited. Only a small share of firms reported that more than half of their workforce received AI-related training in the past year.
Key challenges cited by firms include difficulty in finding qualified trainers, high costs and uncertain returns, ethical and legal concerns, and organisational readiness issues.
ALSO READ: Linking KYC to biometrics, Passport-based roaming among key measures to curb overseas cybercrime
