Mumbai: Generative Artificial Intelligence (GenAI) is reshaping work patterns in India’s IT sector without triggering large-scale job losses, according to a joint report by the Indian Council for Research on International Economic Relations (ICRIER) and OpenAI.
The report found that while entry-level hiring has slowed moderately, recruitment at mid and senior levels remains stable. Researchers noted that this trend is consistent with broader post-pandemic changes in the IT industry and cannot be solely attributed to AI adoption.
The study highlighted that productivity improvements linked to AI significantly outweigh productivity declines, with divisions reporting higher output and stable or smaller team sizes outnumbering those experiencing reduced productivity by a ratio of 3.5 to 1.
Based on a survey covering 650 IT firms across 10 cities, the report observed growing demand for professionals with hybrid skill sets combining domain knowledge with AI or data expertise. About 63 per cent of surveyed firms reported an increased requirement for such multi-skilled professionals.
The findings also showed that more than half of the surveyed companies have already initiated AI adoption programmes through training and awareness campaigns, while another 38 per cent plan to implement such initiatives in the near future.
Nearly one-third of business divisions recorded both higher output and reduced operational costs, suggesting that AI is enabling companies to scale operations more efficiently without proportionate job reductions.
According to Shekhar Aiyar, Director and Chief Executive of ICRIER, the findings provide reassurance for policymakers but also highlight the need for preparedness. He noted that although India’s IT sector is handling AI integration effectively, many firms remain underprepared for future technological disruptions.
The report also revealed that only 4 per cent of companies trained more than half of their workforce in AI over the past year. Key barriers identified include shortages of qualified trainers, high implementation costs, uncertain returns on investment, ethical and legal challenges, and organisational readiness concerns.