AI Creates More Jobs Than It Cuts in India: 83,100 Hires vs 31,921 Job Losses

Artificial intelligence is rapidly transforming India’s employment landscape, but new data suggests that AI is creating more jobs than it is eliminating—at least for now. India reported around 83,100 AI-related hires compared to 31,921 layoffs and attrition due to AI from a Nomura report. That works out to roughly 2.6 AI-related hires for every job lost or affected.

The numbers give a more balanced picture of how AI is impacting employment. Automation is taking on some repetitive and routine jobs but at the same time companies are hiring professionals to develop, implement and manage AI systems. New job opportunities are emerging in fields such as AI engineering, machine learning, data handling, AI operations and technology integration, and so on.

But the headline hiring numbers do not mean all workers displaced by AI can easily move into these new positions. The skills gap is the biggest challenge. Many traditional jobs, and entry-level jobs that entail repetitive processes, are now being more vulnerable to automation, and AI jobs are also all too often a matter of special technical skills and experience. This creates a mismatch between the workers losing jobs and the qualifications employers are looking for.

India’s large technology and outsourcing industry makes it a crucial test bed for AI’s impact on employment. Now companies are also investing in AI-powered tools to increase productivity and automate routine work, while also investing in AI-specific services. The outcome may be a two-speed job market, with demand for workers with advanced digital and AI skills surging while job opportunities for jobs that can be done easily get automated are falling off.

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In fact, the figures also suggest that the future of employment may be less about whether AI creates or destroys jobs and more about how quickly workers can adapt to changing job requirements. Upskilling, reskilling and continuous learning are likely to become increasingly important for IT professionals, fresh graduates and employees working in functions exposed to automation.

For India’s young workforce, this shift is both an opportunity and a challenge. AI is creating thousands of new positions, but candidates may need to develop skills in areas like generative AI, machine learning, data analytics, automation and AI-assisted software development to compete for them.

Overall, the new numbers are a challenge to the notion that AI is destroying jobs in India. The technology is taking away some jobs and creating them. The key issue is whether India’s workforce can acquire the skills required to move from declining occupations into the growing AI economy.