India: Explosive Demand for AI Specialists Amid IT Market Stagnation
India's labor market is undergoing a tectonic shift. In June 2026, the number of job vacancies related to artificial intelligence grew by 16% year-on-year. However, overall hiring in the IT sector declined by 3%. This is not just statistics — it is a clear signal of a reshaping of employer priorities.
The data is based on an analysis of vacancies from over 150,000 companies. The gap in dynamics indicates that corporations are cutting staff overall but purposefully increasing the number of AI specialists. Info Edge (owner of the Naukri platform) CEO Hitesh Oberoi emphasizes: "The difference between hiring AI experts and overall IT recruitment is critical. It shows where technology companies continue to invest. AI is becoming a key competency, especially against the backdrop of shifting demand toward experienced and niche talent."
AI as a New Growth Point
India's $315 billion IT industry is under pressure. Clients are freezing technology budgets due to weak macroeconomics and the threat from AI, which undermines traditional business models. In the 14 industries covered by the report, the number of vacancies in the AI and machine learning segment surged by 25% year-on-year. The biggest jump was recorded in insurance and the consumer goods sector.
Tata Consultancy Services' position is particularly telling. Back in June 2026, the company warned of a slowdown in hiring and a shift toward a model where the number of people and AI agents would become comparable. Already in July 2025, TCS cut over 12,000 jobs, and for the fiscal year ending in March 2026, net headcount decreased by more than 23,000 people. This is not a temporary measure — it is a strategy.
Global Context: The US Is Also in the Game
In parallel, unemployment among technology specialists in the US fell to 2.9% in June 2026, compared to 3.1% in May and 3.5% in April. According to CompTIA, the figure dropped below 3% for the first time since early 2026. Employment in tech professions grew by 47,000, with the overall national unemployment rate at 4.2%. This confirms a global trend: the labor market is restructuring around the AI agenda.
Recall that analysts previously warned that AI could replace 11.7% of the US workforce, equivalent to $1.2 trillion in annual wages. India is merely the epicenter of this process.
My expert opinion: We are witnessing not just a rise in demand for AI specialists, but a structural shift that will destroy tens of thousands of traditional IT roles. Investors should closely watch companies that are actively deploying AI agents — they will win in the long term, while the "old school" of outsourcing risks disappearing.