A recent report by Nomura Holdings indicates that India's artificial intelligence sector is creating significantly more jobs than it is displacing. Between 2022 and August 2026, the country recorded 83,100 AI-related hires, vastly outweighing the 31,921 layoffs and attritions attributed to the technology.
AI's Impact on India's Workforce
India, often referred to as the world's back office for numerous global corporations, has become a crucial test case for understanding AI's influence on employment. The Nomura analysis, based on 69 anecdotes across Asia, positions India as experiencing the largest absolute impact from AI across recruitment, layoffs, and hiring freezes.
This data suggests that, at least in the initial stages of AI adoption, job creation is outstripping displacement. This trend is not unique to India but is also observed in countries like China and the Philippines, where business process outsourcing is a significant employer.
A Two-Tier Labor Market Emerges
The report highlights the emergence of a two-tier labor market in nations such as India and South Korea due to AI adoption. While demand for entry-level workers is diminishing, there is a growing need for experienced professionals who possess a deeper understanding of business operations and can leverage AI effectively.
Most job losses linked to AI have occurred in support teams, often replaced by advanced chatbots. Conversely, the majority of new hires are IT services graduates recruited to meet the escalating demand driven by AI advancements.
Broader Asian Trends and Nuances
Across Asia, AI-related hiring totaled 130,758 jobs during the study period, with over 90% concentrated in the technology sector. In contrast, 60,654 jobs were lost, with approximately 60% of these occurring in financial services.
Nomura economists challenge the prevalent narrative of widespread job destruction caused by AI, suggesting that job creation is currently offsetting displacement. However, the report cautions that these overall figures mask uneven impacts. Displaced workers rarely transition directly into highly specialized roles like AI engineering, indicating that the benefits and losses are not evenly distributed across the workforce.
Nomura emphasizes that its findings should be interpreted as indicators of broader trends rather than absolute employment figures, given the fragmented nature of Asia's labor markets and the reliance on news reports for data collection.