Tech Explained: AI not causing mass job loss but changing roles and productivity in Indian IT sector: OpenAI-backed ICRIER study claims in Simple Terms

Artificial intelligence (AI) is not causing mass job displacement in India’s IT sector. Instead its reshaping work organisation, increasing productivity, and transforming employee roles, according to a new study by the Indian Council for Research on International Economic Relations (ICRIER) backed by OpenAI.The study, titled “AI and Jobs: This Time Is No Different,” was prepared by surveying 650 IT companies across 10 cities between November 2025 and January 2026. This study offers a detailed assessment of generative AI adoption in India. The research examined shifts in hiring patterns, occupational demand, productivity outcomes, and workforce skilling to provide a data-driven perspective on AI’s actual workplace impact, countering widespread concerns about technology-driven unemployment.Commenting on the results, Ronnie Chatterji, Chief Economist, OpenAI, said, “We are seeing a shift in how work is organised, where AI appears to be complementing human talent. This data offers a window into the transition underway in India. The focus now should be on the practical steps needed to help workers align their skills with the advancing capabilities of AI. Currently, only 4% of firms have trained more than half their workforce in AI, presenting a huge opportunity for growth.”

What companies said about how AI is changing their businesses

Companies report a slight easing in hiring, largely limited to entry-level roles, while hiring at mid and senior levels remains steady. Researchers indicate that this pattern aligns with wider post-pandemic trends in the IT sector and should not be linked solely to the adoption of AI.Roles often viewed as more exposed to AI, including software developers and database administrators, continue to see rising demand. This suggests that generative AI is being used mainly to support and improve productivity in technical and analytical work, rather than replace these roles.Talking about the study, Shekhar Aiyar, Director & Chief Executive, ICRIER, said, “Everyone has opinions on this matter, but the ICRIER–OpenAI study brings evidence to the table. The authors have complemented survey findings with in-depth interviews with Indian IT industry leaders to better understand the true impact of generative AI. The results should reassure Indian policymakers without inducing complacency. While India’s IT sector appears to be managing AI adoption relatively well, many firms remain insufficiently prepared for what lies ahead.”