Adoption of AI will curb entry-level adoption: report

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Photos are for consultant functions solely. The introduction of AI is reshaping hiring priorities throughout industries, the report stated. |Picture supplied by: Reuters

The report says that with the introduction of synthetic intelligence (AI), firms are holding again on hiring, primarily on the entry degree.

In keeping with a research by the Indian Council for Worldwide Financial Relations Analysis (ICRIER) supported by OpenAI, the adoption of AI is altering hiring priorities throughout industries.

The survey discovered that 63% of firms reported an elevated demand for candidates with area experience and AI or knowledge expertise, indicating a rising premium for hybrid talent units as AI is built-in into core workflows.

The research, titled ‘AI and Employment: This Time Is No Completely different’, represents probably the most complete enterprise-level assessments of next-generation AI adoption in India to this point. The survey was carried out from November 2025 to January 2026 and obtained responses from 650 IT firms throughout 10 Indian cities.

“Firms are reporting reasonable restraint in hiring, concentrated primarily at entry-level, alongside stability at mid- and senior-level positions. The researchers observe that this restraint is per broader post-pandemic developments within the IT business and isn’t solely resulting from AI adoption.”

Roles generally perceived as most uncovered to AI, equivalent to software program builders and database directors, are additionally amongst these with the best progress in demand, indicating that generational AI is primarily performing as a productivity-enhancing complement to technical and analytical duties, fairly than a substitute, the report stated.

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Throughout the greater than 1,900 enterprise sectors recognized as most affected by AI, productiveness beneficial properties considerably outweigh losses, the report stated.

“On common, the variety of departments reporting excessive output with secure or lowered workforce sizes outnumber these experiencing productiveness declines by a 3.5-to-1 ratio. Practically one-third of departments reported each elevated output and lowered prices, indicating that AI permits firms to extra effectively scale output with out corresponding job cuts.”

Greater than half of the businesses surveyed report that they’re already supporting AI adoption by means of consciousness and coaching initiatives, and an extra 38% plan to take action.

Nevertheless, coaching protection stays restricted, with solely a small variety of firms reporting that greater than half of their workers have obtained AI-related coaching prior to now yr, the report stated.

Key challenges embody problem discovering certified trainers, excessive prices and unsure returns, moral and authorized considerations, and organizational readiness, it added.

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