AI Adoption Reshaping Hiring Practices in India
In a recent report, it has been highlighted that the adoption of Artificial Intelligence (AI) in businesses has resulted in a shift in hiring practices, especially at the entry-level positions. The findings of a study conducted by the Indian Council for Research on International Economic Relations (ICRIER) in partnership with OpenAI reveal that AI integration is influencing the recruitment strategies of companies across various sectors.
The study indicates that a significant number of firms, approximately 63%, are now seeking candidates with expertise in specific domains along with AI and data skills. This trend underscores the increasing value placed on individuals with hybrid skill sets as AI becomes an integral part of core business operations.
Titled ‘AI and Jobs: This Time Is No Different’, the research represents a comprehensive evaluation of AI adoption in India, based on responses from 650 IT firms in 10 cities. The study, conducted between November 2025 and January 2026, sheds light on the evolving landscape of employment in the wake of AI integration.
According to the report, there has been a slight slowdown in hiring activities, primarily observed at the entry level, while mid and senior-level positions remain relatively stable. This adjustment aligns with broader industry trends post-pandemic and is not solely attributed to AI adoption.
The study also reveals that roles commonly associated with AI exposure, such as software developers and database administrators, are witnessing a surge in demand. This suggests that AI is complementing technical and analytical tasks, leading to increased productivity rather than replacing human roles.
Productivity gains resulting from AI implementation are evident across various business divisions, with a notable increase in output compared to declines. The report highlights that divisions reporting higher output with reduced team sizes outnumber those experiencing declines, indicating enhanced efficiency without significant job reductions.
While over half of the surveyed firms are actively supporting AI adoption through training initiatives, challenges such as finding qualified trainers, high costs, ethical concerns, and organizational readiness persist. The report emphasizes the importance of comprehensive training programs to equip the workforce with AI-related skills.
Despite the positive impact of AI on productivity, the study underscores the need for addressing training gaps and overcoming obstacles to maximize the benefits of AI integration in the workplace.
