Artificial Intelligence adoption is triggering a structural shift in hiring practices across the Indian information technology industry, according to a comprehensive study by the Indian Council for Research on International Economic Relations, supported by OpenAI. Companies are reorganizing their talent strategies as Artificial Intelligence tools become more embedded in technical and analytical workflows, prompting a reassessment of the types of skills they prioritize and the roles they need to fill.
The study finds a strong and growing preference for candidates who combine traditional domain expertise with capabilities in Artificial Intelligence or data-related work, creating elevated demand for hybrid skill sets across the sector. The study found that 63 per cent of firms reported increased demand for candidates with these hybrid domain and Artificial Intelligence skills, reflecting the need for employees who can both understand specific business contexts and effectively use advanced technologies. This shift suggests that technical proficiency alone is no longer sufficient, as employers look for professionals who can integrate Artificial Intelligence into domain-specific problem solving and decision making.
At the same time, the report indicates that Artificial Intelligence adoption has led firms to moderate hiring, primarily at the entry level, as productivity gains reduce the need for large cohorts of junior staff. According to the report, Gen Artificial Intelligence is primarily functioning as a productivity-enhancing complement to technical and analytical work, rather than a substitute, which supports existing roles while changing how tasks are performed. The overall pattern points to slower growth in entry-level positions, alongside rising opportunities for mid and senior level professionals who can bridge domain knowledge with Artificial Intelligence and data capabilities in the evolving Indian IT landscape.
