AI skills surge 17-fold in India job market, but compensation gap widens for existing workers

AI skill demand rises over 17 fold in tech jobs, 6 fold in non-tech jobs since 2020

AI skills are now a baseline workplace capability across India. Demand for AI skills in technology jobs has seen a significant increase. Non-technology roles also show a substantial rise in AI skill mentions. Professionals with AI expertise command higher salaries and experience faster growth. Workforce development is crucial for realizing AI's full potential. AI fluency is rapidly emerging as a baseline workplace capability, with AI-related skills now featuring in 15.4 per cent of technology job descriptions, while AI skill mentions in non-technology roles have increased nearly six-fold, says a report. According to Naukri's latest World AI Day Report 2026, AI-related skills now appear in 15.4 per cent of technology job descriptions, up from 0.9 per cent in 2020, reflecting a nearly 17-fold increase in employer demand over the past six years. The report drew insights from nearly 27,000 professionals across 80+ industries and 15+ cities and analysed over 3 lakh job descriptions. Interestingly, AI adoption is spreading beyond traditional technology functions. Mentions of AI-related skills in non-technology job descriptions have increased from 0.26 per cent in 2020 to 1.59 per cent in 2026, reflecting nearly six-fold growth. As AI talent becomes increasingly valuable, professionals with AI skills continue to enjoy a measurable salary advantage. "AI is no longer a future trend, it is already reshaping how India works. It's showing up in job descriptions, hiring patterns, workplace tools and career decisions. The real question now is readiness," Sumeet Singh, Group CMO, Info Edge (India) Ltd, said. According to the report, professionals with AI skills earn higher median salaries across both IT and non-IT roles than peers without AI skills. AI-enabled roles have also recorded stronger salary growth over the past four years, reinforcing the growing business value of AI expertise. AI hiring has grown fastest among professionals with 13 to 16 years of experience, followed by those with 16+ years, as per the report. Recruiter demand has also increased significantly for higher salary brackets, including Rs 40-49 lakh and Rs 50 lakh and above, indicating that organisations are investing in experienced professionals capable of leading enterprise AI transformation. AI usage is particularly high among professionals working in AI-intensive functions. Product Management, Data Science and Analytics, and Engineering, Software and QA report the highest proportion of professionals who rely heavily on AI in their work. The report noted that India's AI journey has entered a new phase. While organisations are accelerating AI adoption and demand for specialised skills continues to grow, sustained investment in workforce development will determine how effectively businesses and professionals realise AI's full potential.

AI Skills Command Higher Salaries in India, But Most Workers Haven't Benefited Yet: Indeed Report

The study, which surveyed 1,267 employers and 2,541 employees across India, reveals that while 66% of employers state they offer substantial salary premiums for AI-skilled roles, more than half of AI-exposed workers (54%) report that their compensation has either stagnated or actually decreased over the past year. According to the inaugural Indeed AI at Work Tracker 2026 released today, a massive gap has widened between what employers are willing to pay for external AI talent versus how they are compensating their existing workforces. The study, which surveyed 1,267 employers and 2,541 employees across India, reveals that while 66% of employers state they offer substantial salary premiums for AI-skilled roles, more than half of AI-exposed workers (54%) report that their compensation has either stagnated or actually decreased over the past year. This data indicates that while the external hiring market aggressively prices AI expertise to attract new talent, internal corporate compensation cycles are lagging significantly, leaving existing mid-career and senior professionals behind. Sashi Kumar, Managing Director, Indeed India, said: "Acquiring AI talent externally is only one half of the equation; retaining and motivating the workforce that upskills internally is the other. This disconnect creates a dual vulnerability for organizations, sparking job insecurity while accelerating the attrition of senior institutional talent. Winning the AI transition requires organizations to align their internal appraisal models with the real-world value their upskilled employees are generating." Employees are increasingly recognising this shift in employer expectations. Nearly 37% believe employers now value skills and degrees equally when hiring for AI roles, while 31% believe AI skills and certifications carry greater weight than formal academic qualifications. The conversation around AI has largely focused on whether jobs will disappear. What our numbers say instead is that jobs are evolving as AI becomes part of everyday work. Employers are increasingly rewarding demonstrable skills over pedigree. For professionals, continuous learning and practical experience are becoming the strongest indicators of long-term career success. Employers expect AI to become a significant part of workforce planning, but not the sole focus. By 2027, nearly 46% expect AI-related or AI-supported roles to account for between 30% and 70% of their workforce strategy, while only around 6% anticipate AI dominating more than 90% of workforce planning. The findings suggest that AI will increasingly complement existing jobs rather than replace them outright. Despite this growing adaptability, concerns about job security remain. Around 42% of employees say they feel highly or somewhat anxious about AI's impact on their careers, while anxiety is highest among unemployed job seekers. AI is also transforming how organisations hire. Nearly 47% of employers already use AI in recruitment, while another 31% plan to introduce AI-powered hiring tools in the coming years, signalling that AI is becoming embedded across both hiring decisions and workforce planning.

AI Skills Pay More in India -- So Why Are Workers Still Waiting for the Raise?

According to the inaugural Indeed AI at Work Tracker 2026 released today, a massive gap has widened between what employers are willing to pay for external AI talent versus how they are compensating their existing workforces. The study, which surveyed 1,267 employers and 2,541 employees across India, reveals that while 66% of employers state they offer substantial salary premiums for AI-skilled roles, more than half of AI-exposed workers (54%) report that their compensation has either stagnated or actually decreased over the past year. The survey highlights a sharp divergence in how the financial benefits of the AI boom are being distributed: * The Employer Offer: Over 40% of organizations state that AI-skilled positions command an 11-30% premium over non-AI roles, while an aggressive 26% report offering premiums between 31-50%. * The Employee Reality: Among professionals with direct day-to-day AI exposure, 36% saw zero change in their compensation package, while 18% reported a net decrease in their overall earnings. Only a small minority achieved the high-bracket increases advertised in the external job market. This data indicates that while the external hiring market aggressively prices AI expertise to attract new talent, internal corporate compensation cycles are lagging significantly, leaving existing mid-career and senior professionals behind. Sashi Kumar, Managing Director, Indeed India, said: "Acquiring AI talent externally is only one half of the equation; retaining and motivating the workforce that upskills internally is the other. This disconnect creates a dual vulnerability for organizations, sparking job insecurity while accelerating the attrition of senior institutional talent. Winning the AI transition requires organizations to align their internal appraisal models with the real-world value their upskilled employees are generating." AI is reshaping careers, one step at a time While public discourse often focuses on AI replacing jobs, employees describe a more gradual transition. Only 11% say AI has completely transformed their role, while a combined 65% report moderate or incremental changes. Around 24% say AI has not yet changed the way they work. AI is also influencing career decisions. More than half (51%) say AI has significantly or somewhat influenced the types of jobs they apply for or aspire to, suggesting professionals are proactively adapting their career choices as AI adoption grows. Skills emerge as the new currency As organizations navigate this transition, the criteria for entering the AI workforce have fundamentally shifted from pedigree to proof. The survey by Indeed highlights that the traditional academic degree is no longer the primary gatekeeper for high-tech roles. * 40% of employers now explicitly prioritize demonstrable AI skills and certifications over formal university degrees. * Only 9% still prioritize an academic degree alone when evaluating candidates for AI roles. * The workforce is highly aligned with this shift, with only 20% of employees believing that a traditional degree carries the most weight in the current job market. Employees are increasingly recognising this shift in employer expectations. Nearly 37% believe employers now value skills and degrees equally when hiring for AI roles, while 31% believe AI skills and certifications carry greater weight than formal academic qualifications. The conversation around AI has largely focused on whether jobs will disappear. What our numbers say instead is that jobs are evolving as AI becomes part of everyday work. Employers are increasingly rewarding demonstrable skills over pedigree. For professionals, continuous learning and practical experience are becoming the strongest indicators of long-term career success. Flexibility is rising, but so is anxiety The report suggests that professionals increasingly define themselves by their ability to learn rather than by traditional job titles. More than half (51%) identify themselves through their skills, learning ability or adaptability, compared with just 17% who define themselves primarily by their designation. Another 19% say they are still figuring out their professional identity, while 13% believe their careers are evolving beyond a single role or label. Employers expect AI to become a significant part of workforce planning, but not the sole focus. By 2027, nearly 46% expect AI-related or AI-supported roles to account for between 30% and 70% of their workforce strategy, while only around 6% anticipate AI dominating more than 90% of workforce planning. The findings suggest that AI will increasingly complement existing jobs rather than replace them outright. AI hiring is steady AI hiring continued to strengthen through 2025, with 63% of employers reporting an increase in recruitment for AI-related roles compared to the previous year. Rather than a dramatic hiring surge, the findings point to steady growth across functions such as AI engineering, strategy, operations, governance and ethics, reflecting how organizations are embedding AI capabilities into their existing workforce. Despite this growing adaptability, concerns about job security remain. Around 42% of employees say they feel highly or somewhat anxious about AI's impact on their careers, while anxiety is highest among unemployed job seekers. AI is also transforming how organisations hire. Nearly 47% of employers already use AI in recruitment, while another 31% plan to introduce AI-powered hiring tools in the coming years, signalling that AI is becoming embedded across both hiring decisions and workforce planning.