India, the world's back office for many global companies, is emerging as a key test case for artificial intelligence's impact on employment, with AI-related hiring outpacing job losses so far, according to Nomura Holdings Inc.
The country's sheer scale means it is seeing the “largest absolute impact” from AI across layoffs, hiring freezes and recruitment, making it “ground zero” for assessing the technology's effect on jobs, Nomura economists Sonal Varma and Si Ying Toh wrote in a report analyzing 69 anecdotes across Asia, mostly from 2022 through August 2026.
India recorded 83,100 AI-related hires during the period, compared with 31,921 layoffs and attrition, according to the report released Friday. “Most firing cases are support teams replaced by chatbots, while most hiring cases are of IT-services graduates that firms explicitly credit to AI demand,” the economists said.
Photo Credit: Bloomberg
Across Asia, AI-related hiring totaled 130,758 jobs during the study period, with more than 90% of those positions in technology. By comparison, 60,654 jobs were lost, about 60% of them in financial services.
The finding “runs counter to the narrative of massive job losses due to growing AI adoption” and suggest that, at least in the early stages of the AI revolution, job creation is more than offsetting displacement, the economists said. That pattern is evident in large economies such as India and China, as well as in the Philippines, where business process outsourcing plays a central role in the labor market.
ALSO READ: India's China+1 Bet Gets An AI Boost As Fund Managers Eye Capex Winners
Still, the headline numbers obscure the fact that AI is creating a different set of winners and losers in the labor market. “Since displaced workers rarely transition to AI engineering roles, the aggregates do mask distributional pain,” the Nomura economists wrote.
Nomura cautioned that the findings were indicative of broader trends rather than absolute job numbers, as Asia's labor market remains fragmented and the analysis was based on news reports.
(This story has not been edited by NDTV staff and is auto-generated from a syndicated feed.)
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.
