According to the report, generative AI is not causing mass layoffs in India’s IT sector so far. Rather, they are reimagining the way work is organized, increasing productivity and transforming jobs.
Survey of 650 IT companies
The findings are based on a survey of 650 IT companies across 10 Indian cities between November 2025 and January 2026. The study examined hiring trends, changes in job demands, productivity outcomes, and employee skill acquisition patterns.The study, titled “AI and Work: No Different This Time,” concluded that rather than replacing skilled professionals, AI is expanding output and enhancing their role.Companies are reporting a slight slowdown in primarily entry-level hiring, while mid- and senior-level hiring is holding steady. The researchers noted that this relaxation is consistent with broader post-pandemic trends in the IT sector and cannot be attributed solely to AI adoption.
Improving productivity, not eliminating jobs
The study found that roles widely seen as vulnerable to automation, such as software developers and database administrators, are actually the roles with the highest growth in demand.He said generative AI does not act as a replacement, but as a productivity tool that complements technical and analytical work.The news agency PTI reported the remarks by OpenAI’s chief economist Ronnie Chatterjee. This data provides clues to the ongoing transition in India. ”He added that the focus should now shift to helping workers adapt. “The focus now is on the practical steps needed to align workforce skills with AI’s evolving capabilities. Only 4% of companies currently train more than half of their workforce in AI, creating a huge opportunity for growth.”
Policymakers are relieved, but there is no room for complacency.
ICRIER Director and CEO Shekhar Aiyar said the debate over AI and jobs often involves strong opinions, but this study brings concrete evidence to the debate.“Everyone has an opinion on this issue,” he said, adding that the ICRIER and OpenAI study “brings the evidence.”He noted that the authors combined survey data and in-depth interviews with Indian IT industry leaders to assess the real-world impact of generative AI.“These results should reassure, but not complacent, Indian policymakers,” Aiyar said, warning that while the IT sector appears to be responding reasonably well to AI adoption, many companies are still not fully prepared for future changes.
