India Emerges as Global Test Case For AI's Job Impact

India has recorded substantially more artificial intelligence-linked hiring than layoffs and employee attrition, according to a report by Nomura Holdings. The findings position the country as an important test case for understanding how AI is reshaping employment, particularly because India serves as a major technology, customer-support and back-office centre for multinational companies.

Nomura economists Sonal Varma and Si Ying Toh examined 69 reported examples from across Asia, mostly covering the period between 2022 and August 2026. They described India as “ground zero” for assessing AI’s employment effects because the scale of its workforce has produced the region’s largest absolute impact across recruitment, hiring freezes, layoffs and attrition.

The report identified 83,100 AI-related hires in India during the period, compared with 31,921 layoffs and attrition cases. The figures indicate that recorded hiring exceeded job reductions by 51,179 positions within the examples analysed. However, the findings are based on selected corporate announcements and reported cases rather than a complete count of employment changes across India’s entire labour market.

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According to the economists, many of the job reductions involved support functions that companies replaced or reorganised after deploying chatbots and other automated systems. By contrast, much of the recruitment involved graduates hired by information-technology service providers, with companies explicitly attributing the additional demand to AI-related business and technology requirements.

The contrasting trends suggest that AI adoption is contributing to a two-tier labour market. Routine and repetitive roles may face greater automation pressure, while demand is increasing for workers who can build, operate, support or apply AI systems. The impact is therefore not limited to overall job numbers, as the technology is also changing the kinds of skills companies require from employees.

India’s net hiring figures provide a more positive picture than predictions of immediate, widespread job destruction, but they do not mean every worker or industry will benefit equally. Employees in vulnerable functions may still face displacement even as new positions emerge elsewhere. The report’s findings underline the growing importance of reskilling, technical education and workforce mobility as businesses expand their use of artificial intelligence.

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