Demand for AI Specialists in India Rises Amid IT Job Cuts

In June, the number of job openings related to artificial intelligence in India increased by 16% compared to last year. Meanwhile, hiring in the IT sector declined by 3%, according to a report by Reuters citing Naukri JobSpeak.

The report is based on job vacancy data from over 150,000 companies. This disparity indicates a shift in priorities: employers are reducing overall hiring but continue to seek specialists for AI-related tasks.

Hitesh Oberoi, CEO of Info Edge (which owns Naukri), attributed the increase to a shift in demand towards specialists with narrow qualifications.

“The difference [between hiring AI specialists and general IT hiring] is significant because it shows where tech companies continue to invest. AI is increasingly becoming a key area of expertise, especially as demand shifts towards more experienced and specialized professionals,” said Oberoi.

The Indian IT industry, valued at $315 billion, is under pressure as clients hold back on technology investments due to a weak macroeconomic environment and the rise of artificial intelligence, which threatens traditional business models.

In 14 sectors included in the report, job openings in AI and machine learning grew by 25% year-on-year. Naukri noted the most significant growth in the insurance and consumer goods sectors.

Reuters also highlighted the position of Tata Consultancy Services (TCS). In June 2026, the company warned of a slowdown in IT hiring and a shift towards a model where the number of employees and AI agents would be comparable. In July 2025, TCS cut over 12,000 jobs, and by the end of the financial year ending in March 2026, the company's net workforce had decreased by more than 23,000.

Meanwhile, in the U.S., unemployment among tech professionals fell to 2.9% in June 2026, down from 3.1% in May and 3.5% in April. CompTIA data, based on statistics from the U.S. Bureau of Labor Statistics, shows that this rate dropped below 3% for the first time since early 2026. Employment in tech professions increased by 47,000 in June, while the overall national unemployment rate stood at 4.2%.

It is worth noting that analysts previously warned that artificial intelligence could replace 11.7% of the U.S. labor force, equivalent to $1.2 trillion in annual wages.