A new report by the Indian Council for Research on International Economic Relations (ICRIER), supported by OpenAI, shows AI is affecting hiring in Indian IT firms. The study found 63% of companies want candidates with both domain expertise and AI or data skills. This mix of hybrid skills is now in high demand. The report, titled 'AI and Jobs: This Time Is No Different', surveyed 650 IT firms across 10 cities between November 2025 and January 2026. It found firms are slowing down hiring mostly at entry levels. However, hiring at mid and senior levels remains steady. The report states, "Firms report a modest moderation in hiring, primarily concentrated at the entry level, alongside stability at mid and senior levels. Researchers note that this moderation aligns with broader post-pandemic trends in the IT industry and cannot be attributed to AI adoption alone." Interestingly, jobs like software developers and database administrators, thought to be at risk from AI, are seeing stronger growth. This suggests AI is helping workers be more productive instead of replacing them. The report adds that over 1,900 business divisions affected by AI show more gains than losses in productivity. "On average, divisions reporting higher output with stable or reduced team sizes outnumber those experiencing productivity declines by a ratio of 3.5 to 1," it says. Nearly a third of divisions report higher output and lower costs, meaning AI helps firms work smarter without cutting many jobs. More than half of the firms surveyed already offer AI training or awareness programs, and 38% plan to start such initiatives. Challenges remain, including lack of trainers, high costs, and concerns about ethics and legal issues. The report notes only a small share of firms have trained over half their staff in AI-related skills in the past year. Published on February 15, 2026, 11:49 am IST.