A recent study by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI, reveals that generative AI is reshaping productivity in India’s IT sector without triggering widespread layoffs. Titled “AI and Jobs: This Time Is No Different,” the report surveyed over 650 IT firms across 10 cities between November 2025 and January 2026. Although hiring, especially at entry-level positions, has slowed, overall employment continues to grow, particularly in mid-level and senior roles. Notably, positions thought to be at high risk from AI, like software developers and analysts, are witnessing increased demand. The study indicates that AI acts as a productivity enhancer rather than a job replacement, with 63% of firms seeking workers with hybrid skills, such as machine learning and data analytics. However, gaps in workforce training remain, with only 4% of companies training most of their staff in AI skills. The IT sector is expected to see job growth as demand for AI services rises.
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