AI skills now required in 11.7% of tech jobs as hiring patterns shift across industries

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India's AI-related job hiring is accelerating rapidly, with AI specialisation now accounting for 11.7% of tech job postings, up from 8.2% a year ago. Major platforms Indeed and LinkedIn reveal how AI is transforming hiring across sectors—from analytics to insurance—while traditional entry-level tech roles decline 45%. Experts argue AI tools will augment human work rather than replace it, as companies prioritize AI applications over expensive foundation models.

AI Specialisation Drives New Hiring Patterns Across India

The landscape of jobs in India is undergoing a significant transformation as AI becomes a cross-industry requirement. According to data from Indeed, roles requiring AI specialisation now account for 11.7% of tech job postings, up from 8.2% a year ago, placing India second globally just behind Singapore in AI-related job hiring

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. This shift signals how rapidly AI skills are becoming essential across multiple sectors, fundamentally changing what employers seek in candidates.

Source: ET

Source: ET

Madhu Kurup, Indeed's vice president of engineering, emphasizes that about 39% of analytics roles now mention AI, followed by 23% of software development jobs, 18% of insurance roles, and 17% of scientific research positions

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. Even traditional engineering fields are adapting, with 17% of industrial engineering jobs, 11% of mechanical engineering roles, and 9.2% of electrical engineering positions now requiring AI skills. Among non-tech sectors, legal, healthcare, BFSI, and insurance are among the fastest adopters of AI.

Tech Hiring Cools While AI Roles Accelerate

The data reveals a dramatic shift in hiring trends over recent years. Tech hiring grew 28% year-on-year between 2021 and 2022, before declining 7% in 2022-2023

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. Growth stabilized in 2023-2024, driven largely by AI roles, while the 2024-2025 cycle shows continued cooling in traditional tech hiring even as demand for AI talent accelerates. The contrast is stark: entry-level tech roles are down 45% from pre-pandemic levels, Big Tech graduate hiring has declined 42%, and mid-to-senior traditional IT roles are down 37%. However, AI job postings were up 34% between 2020 and 2024, cybersecurity roles grew 32% year-on-year, and cloud and DevOps roles continue to post steady 10-13% growth

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India's Focus on AI Applications Over Foundation Models

When discussing India's position in AI, Kurup argues that building foundation models is not the holy grail. While India lags behind in creating large language models like those from OpenAI, Meta's Llama, or Amazon's Nova—which require massive capital investment in GPUs and data—this may not be a critical disadvantage

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. "The capital investment required for GPUs and data is so large that I don't think any Indian company is going to put that kind of money into just buying GPUs," Kurup explains. Instead, he points out how open-source models like Llama can be fine-tuned for markets like India at relatively low cost. Players such as DeepSeek have demonstrated that training and tuning models can be done at much lower costs than earlier believed, allowing Indian companies to catch up quickly by focusing on AI applications and use cases rather than building base models from scratch.

AI Tools Will Augment Human Work, Not Replace It

Addressing concerns about AI replacing jobs, Kurup reframes the discussion entirely. AI allows people to work faster, which creates fear that there will be less work available. He compares it to the evolution of communications—from slow trunk calls to STD and ISD booths, to today's instant mobile connectivity

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. "Communications became faster, and usage increased because it became so easily available," he notes. "AI will be similar—it will help people do more in less time and with less effort." Kurup points to AI hallucinations as evidence that human oversight will remain essential. "If you believe AI never makes mistakes, then you'll have a problem. But if you believe it needs human supervision, then you shouldn't be worried about it as a tool."

LinkedIn's India Engineering Powers Global Hiring Infrastructure

Meanwhile, LinkedIn's India operations are playing a central role in AI engineering the future of hiring globally. Malai Lakshmanan, Senior Director and Head of India Engineering at LinkedIn, reveals that India has a meaningful presence across multiple layers of the platform's infrastructure

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. On the customer-facing side, significant Talent Solutions work runs out of India, including the Easy Apply experience used by millions of job seekers. Teams in India also power the ingestion systems that allow job postings from customer platforms to appear on LinkedIn, and they run Talent Insights. The entire tracking infrastructure that captures every action on LinkedIn—connection requests, comments, likes, follows—is actually run out of India, becoming foundational to everything from business insights to data science experiments. Additionally, the experimentation infrastructure that enables LinkedIn to test UI variations and product changes across the platform is India-owned, making it critical to how the company globally tracks what members respond to

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Source: Digit

Source: Digit

What Job Seekers and Recruiters Should Watch

The shift toward AI specialisation means professionals across industries need to develop relevant skills to remain competitive. Kurup notes that while degrees still matter, skills are becoming equally important

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. Platforms like Indeed's Career Scout and LinkedIn's generative AI features—including tools that can write cover letters and conduct resume reviews—are helping job seekers discover suitable roles and map career paths. Lakshmanan emphasizes that even entry-level talent can gain value from LinkedIn without a large network by creating a profile, exploring interests, following relevant topics, and engaging with content

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. For recruiters, the integration of Hiring Assistant workflows and agentic AI systems suggests that talent acquisition will increasingly rely on intelligent automation to match candidates with opportunities. The data clearly indicates that organizations prioritizing AI applications and investing in upskilling their workforce will be better positioned to navigate this evolving landscape, while those clinging to traditional hiring patterns risk falling behind in an increasingly competitive market.

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