Indian IT Sector To See Net Job Growth: OpenAI-ICRIER Report
India’s information technology (IT) sector is likely to see net job growth over the medium to long term despite the rapid adoption of generative artificial intelligence, according to a new study by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI.
The report found that AI is boosting productivity and reshaping roles rather than triggering widespread job losses, countering fears that automation could lead to mass layoffs in the country’s largest white-collar employment engine.
While firms reported a moderation in hiring at the entry level, employment at mid and senior levels has remained broadly stable. The researchers said the slowdown in fresher hiring mirrors post-pandemic adjustments in the IT industry and cannot be attributed to AI adoption alone.
Roles often seen as vulnerable to automation, including software developers and database administrators, were among those recording the strongest growth in demand, the study said, indicating that generative AI is largely complementing technical and analytical work.
“We are seeing a shift in how work is organised, with AI augmenting human capabilities,” said Ronnie Chatterji, chief economist at OpenAI. “The bigger challenge now is preparing workers for this transition, as only a small fraction of firms have trained a majority of their workforce in AI tools.”
Across more than 1,900 business divisions identified as being most affected by AI, productivity gains significantly outnumbered declines. Divisions reporting higher output with stable or reduced team sizes exceeded those facing productivity losses by a ratio of 3.5 to 1, the report said.
Nearly one-third of divisions reported both higher output and lower costs, suggesting that AI is allowing firms to scale operations more efficiently without corresponding reductions in employment.
Hiring patterns are also shifting. About 63 per cent of firms surveyed said demand has increased for candidates who combine domain expertise with AI or data skills, pointing to a growing premium on hybrid roles as AI becomes embedded in everyday operations.
“Everyone has opinions on AI and jobs, but this study brings evidence,” said Shekhar Aiyar, director and chief executive at ICRIER. “The findings should reassure policymakers, though they also show many firms are not fully prepared for the scale of change ahead.”
More than half of firms said they are already supporting AI adoption through training or awareness initiatives, while a further 38 per cent plan to do so. However, training coverage remains uneven, with only about 4 per cent of firms reporting that more than half of their workforce has received AI-related training in the past year.
Companies cited a lack of qualified trainers, high costs, uncertain returns, ethical and legal concerns and organisational readiness as key barriers to wider upskilling.
The study concluded that rising global demand for AI-enabled services is likely to underpin net job creation in India’s IT sector, even as job roles evolve and skill requirements change.
