AI Is Boosting Productivity, Not Cutting Jobs: ICRIER-OpenAI Study

Fears that Artificial Intelligence (AI) could lead to widespread job losses may be overstated, according to a new joint study by the Indian Council for Research on International Economic Relations (ICRIER) and OpenAI. The report says generative AI is helping companies produce more, but it is not causing large-scale layoffs at present.

The findings are based on a study titled “AI and Jobs: This Time is No Different.” This study is based on a survey of 650 Information Technology (IT) firms across 10 Indian cities. The survey was carried out between November 2025 and January 2026. It looked at hiring trends, skill needs, productivity levels, and how companies are preparing their workforce.

Is AI Really Taking Away Jobs?

The findings show no signs of mass job cuts due to AI. Instead, companies say the technology is helping employees work faster and more efficiently. Skilled professionals, in particular, are seeing higher demand.

The report notes that hiring has slowed slightly, but mainly for entry-level roles. Mid-level and senior hiring remains steady. Researchers said this slowdown is not unusual and follows changes seen in the IT sector after the pandemic. They added that AI alone cannot be blamed for this trend.

Interestingly, jobs perceived as most exposed to AI have witnessed the strongest growth in demand. The examples of such jobs include software developers and database managers.

“Roles commonly perceived as most exposed to AI, such as software developers and database administrators, are also among those experiencing the strongest growth in demand, indicating that gen AI is primarily functioning as a productivity-enhancing complement to technical and analytical work, rather than a substitute”, the study claimed.

How Is AI Changing Workplaces?

Ronnie Chatterji, Chief Economist at OpenAI, said the study shows work is being reorganised. He said AI is working alongside people, not replacing them. According to him, the focus should now shift to helping workers learn new skills.

He also pointed out a gap in training. Only 4 per cent of companies surveyed said they had trained more than half their staff in AI tools. This shows that many firms are still in the early stages of preparing their teams.

Experts say this creates both a challenge and an opportunity. Workers who learn to use AI could benefit the most in the coming years.

Are Companies Ready for the Future?

Shekhar Aiyar, Director and Chief Executive at ICRIER, said the study provides real data on a topic often driven by opinions. He said the researchers also spoke directly with IT industry leaders to understand what is happening on the ground.

He added that the findings should give policymakers some comfort. At the same time, he cautioned against complacency. India’s IT sector has managed the early phase of AI adoption fairly well, but many firms still lack full readiness for the changes ahead.

The report concludes that AI is reshaping jobs, not removing them. It is changing how work is done and increasing output. But the long-term impact will depend on how quickly companies and workers adapt.

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For now, the message is clear. AI is becoming part of the workplace. Those who learn to use it may find new opportunities, while those who ignore it risk being left behind.

Sources:

NDTV Profit

The Times of India