AI hiring outpaces AI-linked job cuts in India, Nomura says

Artificial intelligence-related hiring has exceeded job losses linked to the technology in India so far, Bloomberg reported on Friday, citing Nomura economists Sonal Varma and Si Ying Toh.

Bloomberg said the economists examined 69 company examples across Asia, mainly from 2022 through August 2026, covering recruitment, hiring freezes and layoffs. India recorded the largest employment impact by number.

Because the exercise draws on company cases rather than comprehensive employment statistics, it indicates the direction of corporate activity but does not establish an economy-wide balance between jobs created and eliminated.

Broader labor-market evidence also points to uneven effects. A World Bank study of South Asia found that job postings declined by about 20% in white-collar occupations considered both highly exposed to AI and susceptible to substitution. Software developers, call-center agents, accountants and proofreaders were among the affected roles.

The same study found greater potential for AI to assist Indian workers than replace them. It estimated that 15.6% of jobs in India were complementary to AI, compared with 6.4% considered susceptible to substitution.

Demand for specialist skills remains substantial. The World Bank’s Digital Progress and Trends Report 2025 estimated that India recorded about 230,000 vacancies requiring AI skills annually between 2021 and 2024.

Employers are also redesigning existing positions. A Nasscom and Indeed study published in January found that 86% of employers had seen AI affect roles and responsibilities, while 35% reported significant changes to jobs.

The evidence suggests that India is experiencing a reallocation of work rather than uniform job creation or destruction. Demand is strengthening in AI-intensive occupations even as recruitment weakens in some routine and remotely delivered roles. The eventual employment outcome will depend partly on whether workers can acquire the skills required by the new positions.