Artificial intelligence (AI) is generating more jobs than it is eliminating in India, but the benefits are unevenly distributed, according to a Nomura report published this week. While demand for experienced professionals in AI-related roles continues to grow, companies are cutting back on fresher recruitment, impacting entry-level job seekers, the report found, as India emerges as a key centre of AI-driven labour market changes in Asia, per livemint.com.
The Nomura report highlights that India's large workforce and role as a global hub for IT services and back-office operations position it uniquely for AI adoption. However, the shift is creating a divide: experienced workers are benefiting from increased opportunities, while freshers face hiring slowdowns. This dynamic reflects companies prioritizing skilled AI talent to meet evolving technological demands, the report explains, underscoring a structural change in recruitment patterns within India's technology sector, according to livemint.com.
This trend matters as India is a major player in Asia's AI transformation, with its labour market adjusting to automation and AI integration. The report contrasts with concerns that AI would cause net job losses, instead showing a net job creation effect but with uneven distribution. The reduction in fresher hiring could affect the pipeline of new talent entering the workforce, potentially influencing India's long-term competitiveness in AI and IT services, as detailed by livemint.com.
The Nomura report was released on August 23, 2026, providing data on AI's impact on India's labour market, particularly highlighting the challenges for freshers amid growing demand for experienced AI professionals, according to livemint.com.