AI reshapes hiring priorities, entry-level jobs see slowdown: ICRIER report | Industry News
The adoption of Artificial Intelligence (AI) has led firms to moderate hiring, primarily at the entry level, according to a report.
Adoption of artificial intelligence is reshaping hiring priorities across the industry, according to a study from the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI.
The research finds that 63 percent of firms report increased demand for candidates with domain expertise and AI or data skills, indicating a growing premium on hybrid skill sets as AI is integrated into core workflows.
The study, titled ‘AI and Jobs: This Time Is No Different’, represents one of the most comprehensive firm-level assessments of AI adoption in India to date. The study, conducted between November 2025 and January 2026, received responses from 650 IT companies across 10 cities in India.
“Firms are reporting stability at mid- and senior-level levels, as well as modest moderation in hiring, concentrated primarily at the entry level. This moderation is consistent with broader post-pandemic trends in the IT industry and cannot be attributed solely to AI adoption, the researchers note.” he said.
He noted that roles most commonly exposed to AI, such as software developers and database administrators, were also among those experiencing the strongest growth in demand, indicating that AI primarily functions as a productivity-enhancing complement rather than a replacement for technical and analytical work.
The report noted that productivity gains significantly outnumbered declines in more than 1,900 job divisions identified as most impacted by AI.
“On average, departments reporting higher output with stable or reduced team sizes outnumber those experiencing productivity declines by a factor of 3.5 to 1. Almost a third of departments report both increased output and reduced costs, indicating that AI is allowing firms to scale output more efficiently without corresponding reductions in employment,” he said.
More than half of the companies surveyed reported that they are already supporting AI adoption through awareness or education initiatives, and an additional 38 percent plan to do so.
However, it was stated that the scope of training remained limited and only a small number of companies reported that more than half of their workforce received training on artificial intelligence last year.
Key challenges cited include difficulty finding qualified instructors, high costs and uncertain returns, ethical and legal concerns, and institutional preparedness.
