A new study by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI, has sought to alleviate fears regarding widespread job losses tied to artificial intelligence. The report indicates that generative AI is not currently leading to mass layoffs in India’s IT sector. Rather, it is transforming work organization, enhancing productivity, and reshaping job roles.
The findings stem from a survey of 650 IT firms across 10 Indian cities, conducted between November 2025 and January 2026. This study examined various factors, including hiring trends, shifts in occupational demand, productivity outcomes, and workforce skilling patterns. Titled “AI and Jobs: This Time is No Different,” the research concluded that AI is boosting output and reinforcing the need for skilled professionals, rather than displacing them.
According to the study, firms reported a modest slowdown in hiring, primarily at the entry level, while recruitment rates at mid and senior levels have remained stable. Researchers noted that this hiring moderation aligns with broader post-pandemic trends in the IT sector and cannot be solely attributed to AI adoption.
In a surprising twist, roles typically perceived as susceptible to automation, such as software developers and database administrators, are now experiencing some of the highest demand growth. The study describes generative AI as a productivity-enhancing tool that complements technical and analytical tasks, rather than replacing human labor. Ronnie Chatterji, chief economist at OpenAI, commented, “We are seeing a shift in how work is organised, where AI appears to be complementing human talent. This data offers a window into the transition underway in India.”
Chatterji emphasized the importance of helping workers adapt to these changes, noting that only 4 percent of firms have trained more than half their workforce in AI capabilities. This presents a significant opportunity for growth within the sector as businesses work to align their workforce skills with technological advancements.
Shekhar Aiyar, director and chief executive of ICRIER, further underscored the importance of the study’s findings in the ongoing debate about AI and employment. He stated, “Everyone has opinions on this matter,” adding that the ICRIER-OpenAI research provides concrete evidence to support discussions surrounding this critical issue. Aiyar highlighted the combination of survey data with in-depth interviews of industry leaders as instrumental in assessing the real impact of generative AI.
The results of the study are expected to reassure Indian policymakers, though Aiyar cautioned against complacency. He noted that while the IT sector appears to be managing AI adoption effectively, many firms are not yet fully prepared for the potential future shifts in the workforce landscape. This suggests a need for ongoing focus on workforce development and adaptation as AI technologies continue to evolve.
As generative AI tools gain momentum, the imperative for companies to enhance their training programs becomes increasingly clear. The study’s insights indicate a proactive approach to workforce skilling could facilitate a smoother transition into a more AI-integrated work environment. In a landscape characterized by rapid technological advancement, the challenge will lie in ensuring that workers are equipped with the necessary skills to succeed alongside emerging AI capabilities.
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