AI’s Transformative Influence on India’s IT Sector
Recent findings indicate that artificial intelligence (AI) is not precipitating widespread job displacement within India’s information technology (IT) sector.
Instead, it is reshaping work organization, enhancing productivity, and redefining employee roles, as revealed in a new study conducted by the Indian Council for Research on International Economic Relations (ICRIER) in collaboration with OpenAI.
The research, titled “AI and Jobs: This Time Is No Different,” entailed a comprehensive survey involving 650 IT companies spread across ten cities from November 2025 to January 2026.
This study provides an in-depth exploration of generative AI adoption in India, scrutinizing alterations in hiring trends, occupational demand, productivity metrics, and workforce skill enhancement.
The aim is to furnish a data-driven analysis of AI’s tangible effects in the workplace, particularly against the backdrop of prevalent anxieties regarding technology-induced unemployment.
Ronnie Chatterji, Chief Economist at OpenAI, commented on the implications of the findings, stating, “We are witnessing a transformation in work organization, where AI appears to complement human talent. This data provides insights into the ongoing transition in India.
The emphasis now should be on actionable steps to help workers align their skills with the burgeoning capabilities of AI. Currently, only 4% of firms have equipped more than half their workforce with AI training, presenting a significant opportunity for expansion.”
Corporate Perspectives on AI’s Role in Business Evolution
Responses from companies suggest a marginal easing in hiring practices, primarily affecting entry-level positions, while recruitment for mid and senior roles remains robust. Researchers assert that this trend mirrors broader post-pandemic dynamics within the IT sector and should not be solely attributed to AI adoption.
Positions traditionally perceived to be vulnerable to AI, such as software developers and database administrators, are experiencing increased demand. This observation implies that generative AI is predominantly employed to bolster and enhance productivity in technical and analytical endeavors, rather than supplanting these roles.
Further commenting on the study, Shekhar Aiyar, Director and Chief Executive of ICRIER, remarked, While opinions abound on this topic, the ICRIER–OpenAI study provides empirical evidence.
The authors supplemented survey insights with comprehensive interviews with leaders from India’s IT sector to garner a clearer understanding of generative AI’s true impact.
The outcomes should instill confidence in Indian policymakers, albeit without inducing complacency. Although India’s IT sector appears to be navigating AI adoption proficiently, many firms remain inadequately prepared for the challenges that lie ahead.
Source link: Timesofindia.indiatimes.com.
