AI reshapes IT hiring, traditional tech roles remain in demand
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Bengaluru: Hiring in traditional technology domains continues despite concerns that artificial intelligence (AI) could reduce jobs in the IT services industry. However, companies are increasingly seeking candidates with a combination of conventional technology expertise and AI skills, HR experts said.
Despite fears about AI replacing jobs, hiring has continued at a steady pace in the early part of 2026. “The profile of hiring has changed due to the AI wave. We continue to hire for non-AI, established skills, but customers are also asking for combinations that include AI capabilities. This is a good sign for the Indian IT industry as it keeps engineers job-ready,” said Siva Prasad Nanduri, CEO of staffing firm Diensten Tech.
“Every company is embracing AI, which will significantly improve productivity. AI will augment work rather than replace it. Today, almost every software engineer is using Copilot. It enhances productivity, but AI still needs engineers to provide domain knowledge and design direction,” he added.
A recent Naukri JobSpeak Index Report highlights this trend. According to the report, the IT sector recorded 6% job growth over the past year, while fresher recruitment rose 8% in February.
Multinational corporations operating in India led the hiring surge, posting 55% higher recruitment over the past year. Within the IT sector, demand for AI and machine learning (AI/ML) skills is growing rapidly, with jobs requiring such skills rising 40% year-on-year.
Experts, however, cautioned that AI-driven productivity improvements could reduce the number of engineers required for certain projects.
“BPM, KPM and entry-level software roles are likely to be impacted by AI. Lower-level jobs may face pressure, though the impact has not yet begun on a large scale,” Nanduri said. He also noted that it is unlikely that only a handful of global AI firms will dominate the technology landscape.
“India is building its own AI models and offering access to global companies as well. This places India in a strong position in the AI ecosystem,” he said. Overall, hiring trends among major IT firms remained mixed in the third quarter of FY26.
