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AI talent demand outpaces IT in India as tech recruitment turns selective

AI talent demand outpaces IT in India as tech recruitment turns selective
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AI hiring in India’s technology sector outpaced the broader IT job market in June, with demand for artificial intelligence roles rising even as overall technology recruitment declined, according to job portal Naukri’s monthly JobSpeak report.

Naukri said hiring for AI-related roles in the IT sector rose 16% year-on-year during the month, while overall IT recruitment fell 3%, showing a clear split between weaker traditional technology hiring and stronger demand for talent linked to automation, machine learning and generative AI.

The report, which tracks white-collar hiring trends across sectors, showed that India’s overall job market remained positive in June, with hiring activity rising 6% from a year earlier.

AI talent demand outpaces IT in India as tech recruitment turns selective

However, the contrast inside the technology sector stood out, as companies continued to show caution in traditional IT roles while expanding recruitment for more specialized AI-linked positions.

AI talent demand outpaces IT in India as tech recruitment turns selective

AI demand breaks away from IT slowdown

The data points to a widening divide inside India’s technology labor market, where employers are becoming more selective about conventional tech hiring but continue to invest in workers who can build, deploy or manage AI-led systems.

Demand for AI talent was not limited to technology companies, as AI and machine learning roles rose 25% year-on-year across the 14 sectors tracked by the report, led by stronger hiring in insurance and fast-moving consumer goods.

The figures suggest that AI demand is spreading beyond software firms as companies in more traditional industries build internal technology capabilities and increase their use of automation.

Naukri’s data also showed that fresher hiring continued to improve, suggesting that companies are still adding entry-level workers in selected areas even as they remain cautious about wider recruitment.

AI talent demand outpaces IT in India as tech recruitment turns selective

The pattern reflects a labor market that is expanding unevenly, with demand concentrated in roles connected to newer technologies, business transformation and productivity gains.

Specialist roles gain priority

Naukri’s parent Info Edge said employers are prioritizing AI capabilities and specialized technology roles over traditional software hiring, reflecting a more selective recruitment market.

Demand was also stronger for senior professionals, suggesting companies are looking for experienced workers who can guide AI adoption and integrate the technology into business operations.

For workers, the report signals that hiring growth may increasingly depend on skills linked to automation, data-driven systems and applied AI, as companies reassess the roles they need in a changing technology market.

GCC growth faces a skills test

That shift is especially visible in India’s global capability centers, which have grown from back-office hubs into strategic bases for engineering, analytics, cybersecurity, product development and enterprise technology.

Industry data showed India is expected to have 2,117 GCCs by the end of fiscal 2026, employing 2.36 million people and generating about $100 billion in revenue. The scale of that ecosystem means changes in hiring demand inside these centers could have a wider impact on India’s technology workforce.

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