Artificial intelligence is creating more employment opportunities than it is displacing in India so far, but the shift is also creating a widening divide between the skills companies need and those available among entry-level workers, according to a report by Nomura.
India recorded 83,100 AI-related hires against 31,921 layoffs and attrition cases linked to the technology, translating to roughly 2.6 hires for every job lost or affected.
Nomura economists Sonal Varma and Si Ying Toh analysed 69 reported employment cases across Asia between 2022 and August 2026. The findings place India as the largest contributor to both AI-related hiring and displacement among the Asian markets examined.
The trend reflects India's position as a major technology services and business process outsourcing hub. For years, the country's workforce has supported global companies across software testing, data processing, customer service and other operational functions. The adoption of AI is now changing the skills required across many of these roles.
Automated chatbots, for example, are increasingly handling tasks traditionally performed by customer support teams. At the same time, technology and IT services companies are recruiting engineering graduates and experienced professionals to meet growing demand for AI-related capabilities.
However, the report points to a mismatch between the jobs being displaced and the roles being created. Workers affected by automation in customer support or other routine functions may not possess the specialised technical skills required to transition directly into AI engineering or related positions.
This shift could have a particular impact on fresh graduates. Entry-level roles have traditionally allowed young employees to learn company processes and build skills after joining an organisation. As businesses automate more routine tasks, that pathway could become narrower.
Companies are also moving away from large-scale hiring followed by extensive on-the-job training and increasingly looking for candidates who already possess specialised AI expertise, according to the report.
The trend is contributing to what Nomura describes as a two-tier labour market, with stronger demand for experienced professionals alongside pressure on some entry-level positions.
India is not alone in experiencing this shift. Across the Asian cases analysed, Nomura identified 130,758 AI-related hires compared with 60,654 job losses. More than 90 per cent of the reported hiring occurred in the technology sector, while financial services accounted for about 60 per cent of the job cuts.
India, China and the Philippines were among the markets with significant exposure, partly because of their large technology services and outsourcing industries.
The findings come as AI, digital and data capabilities become increasingly important in India's employment market. A separate 2026 NIIT study conducted with YouGov found AI, cybersecurity, digital and data skills among the most critical capabilities employers expect to need over the next three to five years.
Nomura, however, cautioned that its analysis is based on reported corporate cases and should not be interpreted as a comprehensive measure of employment across Asia.
The findings nevertheless indicate that the early impact of AI on India's workforce is not limited to job losses. While new positions are emerging alongside automation, the changing mix of roles is placing greater emphasis on specialised skills, raising questions about how quickly fresh graduates and displaced employees can adapt to an AI-driven employment market.
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