- AI is lowering technology costs but reducing entry-level hiring volumes, says Fractal CEO
- AI is changing how companies build products and approach talent recruitment processes
- Global AI adoption will grow, boosting demand for digital infrastructure and data centres
Artificial intelligence is lowering the cost of technology but is also weighing on hiring volumes, particularly at the entry level, according to Fractal CEO and Nasscom Chairman Srikanth Velamakanni.
Speaking on the evolving impact of AI, Velamakanni said the technology is fundamentally changing how companies build products and hire talent.
"Cost of technology has been too high for too long. AI is reducing the cost of doing tech work," he told NDTV Profit.
However, he added that the transition is likely to affect hiring in the near term.
AI will reduce the volume of hiring in the initial periods, Velamakanni said, noting that entry-level recruitment has already slowed over the past few years as companies rethink workforce requirements. "The hiring process is being re-imagined with AI," he said.
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Despite concerns around employment, Velamakanni said AI adoption will accelerate globally over the next few years, driving demand for digital infrastructure.
"Many Big Tech players are announcing data centres in India," he said, adding that investments in the sector would have a multiplier effect on the broader economy.
"The world will use a lot more AI in the next few years," Velamakanni said, adding that data centre investments will have a multiplier effect on the economy,"
On AI safety and cybersecurity, Velamakanni said recent developments have demonstrated both the risks and opportunities associated with advanced AI models.
"People saw Mythos can be used for cyber attacks," he said. "Mythos and Fable 5 can also be used to fix software vulnerabilities."
He added that India should leverage open-weight AI models to strengthen its digital infrastructure. The government could also invest in developing indigenous foundation models to support the country's long-term AI ambitionsm, he added.
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