Sun Feb 15 06:19:26 UTC 2026: ### AI Adoption Moderates Entry-Level Hiring in India, Demands Hybrid Skill Sets

The Story:
A new study by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI, reveals that the adoption of Artificial Intelligence (AI) is reshaping hiring practices within the Indian IT sector. The report, titled ‘AI and Jobs: This Time Is No Different’, indicates a moderation in hiring, primarily at the entry-level, as firms increasingly prioritize candidates with domain expertise coupled with AI or data skills. While concerns exist about job displacement, the study suggests that AI is currently functioning more as a tool to enhance productivity rather than a direct substitute for human labor.

Key Points:

  • 63% of firms report increased demand for candidates with domain expertise and AI/data skills.
  • Hiring moderation is primarily concentrated at the entry level, with stability at mid and senior levels.
  • Productivity gains outweigh declines in business divisions affected by AI by a ratio of 3.5 to 1.
  • Nearly one-third of divisions report both increased output and reduced costs due to AI.
  • Over half of surveyed firms are supporting AI adoption through training initiatives, but training coverage remains limited.
  • Key challenges in AI adoption include difficulty finding qualified trainers, high costs, uncertain returns, ethical/legal concerns, and organizational readiness.
  • The study was conducted between November 2025 and January 2026, encompassing 650 IT firms across 10 cities in India.

Key Takeaways:

  • AI adoption is driving a shift in required skill sets, emphasizing the need for hybrid expertise combining domain knowledge with AI/data skills.
  • While entry-level hiring is being moderated, AI is currently positioned as a productivity enhancer rather than a widespread job replacement.
  • Indian IT firms face challenges in scaling AI adoption due to training limitations, cost concerns, and ethical considerations.
  • This study underscores the ongoing need for robust training programs and careful planning to ensure a smooth transition into an AI-integrated workforce.
  • The trend aligns with broader post-pandemic trends in the IT industry.

Impact Analysis:

The findings of this study have significant long-term implications for India’s IT sector and workforce. The shift in hiring priorities necessitates a re-evaluation of educational and training programs to equip individuals with the necessary hybrid skill sets. Failure to address the challenges related to training, ethical concerns, and organizational readiness could hinder India’s ability to fully leverage the potential benefits of AI, potentially impacting its competitiveness in the global market. Furthermore, the moderation of entry-level hiring warrants close monitoring to prevent potential long-term unemployment or underemployment issues among new graduates and entrants to the IT workforce. Strategic investments in reskilling initiatives and proactive policy measures will be crucial to navigate these changes effectively.

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