AI won't cause mass layoffs, but will transform roles: Study
15 Feb 2026

A joint study by the Indian Council for Research on International Economic Relations (ICRIER) and OpenAI has downplayed fears of mass job losses due to artificial intelligence (AI).

The report, titled "AI and Jobs: This time is no different," found that generative AI is changing work organization, increasing productivity, and transforming roles rather than causing large-scale layoffs.

Survey of 650 IT firms across 10 cities
Research methodology

The study is based on a survey of 650 IT companies across 10 cities, conducted between November 2025 and January 2026.

It examined changes in the hiring patterns, occupational demand, productivity outcomes, and workforce skilling.

The findings suggest that AI is boosting output and elevating skilled experts rather than triggering mass layoffs.

Need to focus on practical steps to help workers
Expert opinion

Ronnie Chatterji, the Chief Economist at OpenAI, said that the data shows a shift in how work is organized with AI complementing human talent.

He emphasized the need to focus on practical steps to help workers align their skills with advancing capabilities of AI.

The report also notes a slight moderation in hiring, mainly at the entry level, but stability at mid and senior levels.

Generative AI acting as productivity-enhancing complement
Job market impact

The study found that roles often perceived as most exposed to AI, such as software developers and database administrators, are among those with the strongest growth in demand.

This indicates that generative AI is mostly acting as a productivity-enhancing complement to technical and analytical work, rather than a substitute.

The report highlights a shift in hiring priorities with 63% of firms reporting rising demand for hybrid skill sets.

Barriers to upskilling
Training challenges

Despite over half of the surveyed firms launching AI awareness or training initiatives, only 4% have trained more than half their workforce in AI-related skills.

The report cites high costs, difficulty finding qualified trainers, and organizational readiness as key barriers.

However, it also predicts that growing global demand for AI-powered services will likely create more jobs in India's IT sector over time.