AI in India Creates More Jobs Than Layoffs Despite Growing Automation

Artificial intelligence is changing the employment landscape in India, but the impact is not limited to job losses. A recent Nomura study indicates that Indian companies have created substantially more AI related jobs than the number of positions eliminated because of automation.

Between 2022 and August 2026, companies in India reportedly eliminated 31,921 jobs citing AI related changes. During the same period, around 83,100 AI linked positions were created, putting AI based hiring at nearly three times the level of job cuts.

The study suggests that the growing use of AI tools, particularly chatbots, has reduced the need for certain roles in customer support and other routine operations. At the same time, companies have increased hiring in areas connected with AI services and technology operations to meet the rising demand created by artificial intelligence.

However, the employment impact is not the same for everyone. Nomura’s analysis points to the emergence of a two tier labour market in countries such as India and South Korea. Entry level workers are facing weaker demand in some areas, while professionals with greater experience in business operations and technology are finding stronger opportunities.

The broader Asian employment market is also showing a similar trend. More than 130,000 AI related jobs were reportedly created across Asia during the period covered by the study, with around 90 percent of those positions concentrated in the technology sector.

At the same time, Asian companies are estimated to have eliminated 60,654 jobs linked to AI related changes. The financial services sector accounted for around 60 percent of these job cuts, highlighting how automation is affecting industries at different levels.

The study also raises concerns about whether workers who lose their jobs because of AI can easily move into the new opportunities being created. Many displaced employees may not have the technical skills required for AI engineering or similar positions, making the transition more difficult.

The findings suggest that AI is not simply replacing jobs across the board. Instead, it is changing the type of skills companies are looking for. While new opportunities are emerging, workers without relevant technical or specialised skills may find it harder to benefit from the shift.