AI Boosts Output, Not Layoffs: New ICRIER-OpenAI Study Defends India’s IT Jobs

A new landmark study released on February 14, 2026, by the Indian Council for Research on International Economic Relations (ICRIER) and supported by OpenAI, suggests that India’s IT sector is successfully navigating the Generative AI (GenAI) transition.

Contrary to global fears of mass layoffs, the report titled “AI and Jobs: This Time Is No Different” reveals that AI is serving as a productivity multiplier rather than a job killer.

Productivity Over Displacement

The study, which surveyed 650 IT firms across 10 Indian cities between November 2025 and January 2026, found that AI adoption is actually bolstering demand for technical roles.

Occupations once thought to be at risk—such as software developers and database administrators—are experiencing some of the strongest growth.

Productivity gains are substantial, with a ratio of 3.5 to 1 of business divisions reporting higher output against those seeing declines.

Nearly one-third of units have achieved both increased output and reduced costs.

ICRIER-OpenAI Report Suggests Shifting Hiring Patterns

While entry-level hiring has seen a modest moderation, researchers attribute this more to post-pandemic adjustments than AI alone.

Mid-to-senior level roles remain stable, but the criteria for candidates are evolving.

Approximately 63% of firms now prioritize “hybrid skill sets,” seeking professionals who combine domain expertise with AI and data proficiency.

Ronnie Chatterji, Chief Economist at OpenAI, noted that AI is “augmenting human capabilities,” allowing for a net job creation in the long term as global demand for AI-enabled services rises.

The Skilling Gap Challenge

Despite the optimism, a significant “readiness gap” persists.

While over 90% of firms have initiated or plan to start AI training, only 4% have trained more than half of their workforce.

Key barriers include high training costs, a shortage of qualified trainers, and ethical concerns.

ICRIER Director & Chief Executive Shekhar Aiyar cautioned against complacency, stating that while the findings are reassuring for policymakers, many firms remain underprepared for the scale of the transition ahead.

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