Nearly a seventh of the technology job postings in India in January this year mentioned AI skills, up from less than 9% a year ago, indicating demand for a skillset that’s hard to find at levels to be considered industry ready, showed a report published by Nasscom and Indeed.
The report, built on the responses from employees across industries, showed India ranked behind only Singapore among Indeed’s markets in the share of AI-linked job postings.
The data comes at a time when AI is reshaping hiring and work structures across enterprises, as automation and AgenticAI functions are increasingly sought to outsource repetitive tasks to machines, and free up payroll costs. The shift is also changing the way firms recruit and train employees, with companies placing greater emphasis on practical AI capabilities and certifications instead of traditional degrees.
At the same time, employees are facing pressure to adapt as businesses integrate AI into daily operations and delivery models.
The study found that 86% of employers had seen AI affect job roles and responsibilities, while 35% reported major changes in work profiles. Among employees, 73% said AI had altered their roles, with 11% saying their work had been completely transformed.
Hiring for AI-related roles has increased across sectors, including banking, telecom, e-commerce, and technology. Among the top job categories in demand were AI engineering, AI operations and infrastructure, and data systems. Skills such as cloud integration, generative AI, prompt engineering, and MLOps were among the most sought-after.
The technology sector has also seen growing demand for AI-linked roles such as AI developer and AI/ML engineer. Companies are increasingly focusing on skills instead of degrees while hiring. About 40% of employers said they preferred candidates with demonstrable AI skills or certifications over formal qualifications, while another 32% valued both equally.
The increase in search for AI skills has also led to salary increases, including from SMEs, according to more than half of the employees surveyed.
Despite the upsides, employers flagged a shortage of trained workers. About 58% cited low applicant availability as a challenge, and 50% pointed to skill mismatches, with the gaps not limited to AI skills but also across foundational/human-centred capabilities
The report also found that 65% of employees were still learning AI tools or lacked confidence in using them, while most relied on self-learning rather than formal training programmes. When matched with the rapid development of the AI technology itself, this is leading to an increase in anxiety about AI disrupting their jobs.
