India's Job Market in the Age of AI: Opportunities and Challenges

India's Job Market in the Age of AI: Opportunities and Challenges

The integration of artificial intelligence (AI) in India's job market is transforming the way companies hire and the skills they require from employees. According to a report by (link unavailable), 72% of employers plan to expand their workforce through new job creation in the second half of 2025, driven largely by demand for specialized technology roles. The sectors identified as key beneficiaries of AI-led opportunities include IT, analytics, and business development.

The demand for AI skills is on the rise, with job postings for AI-related roles increasing by 21% annually since 2019. However, the supply of skilled professionals has not kept pace, resulting in a significant talent gap. According to a report by Bain & Company, India is expected to witness a shortage of over 1 million skilled professionals in the AI sector by 2027. To bridge this gap, companies are focusing on upskilling and reskilling their employees to meet the growing demand for AI talent.

While AI poses challenges for certain job roles, it also presents opportunities for growth and innovation. The ServiceNow AI Skills Research 2025 report predicts that agentic AI will transform over 18 million jobs in India by 2030, with manufacturing and retail being the most impacted sectors. However, the report also notes that over 3 million new technology jobs are expected to be added by 2030, reflecting India's shift from a labor-centric to a digitally enabled economy.⁴

To remain competitive in the job market, professionals need to develop skills that are complementary to AI. According to the Great Learning report, upskilling in AI and data science can lead to significant career growth, with 80% of professionals who upskilled in these areas reporting promotions or new job opportunities. As the job market continues to evolve, it's essential for professionals to stay adaptable and focus on developing skills that are in demand.

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