New Delhi, February 14 A new study by the Indian Council for Research on International Economic Relations (ICRIER) and OpenAI has sought to downplay fears about large-scale disruptions in the labor market due to Artificial Intelligence, saying that generative AI is currently not causing mass layoffs but is reshaping how work is organized, increasing productivity, and transforming roles.
The conclusions are based on a survey of 650 IT firms across 10 cities (conducted between November 2025 and January 2026), analyzing shifts in hiring patterns, occupational demand, productivity outcomes, and workforce skills.
According to the ICRIER-supported study, evidence from the firms suggests that AI is amplifying output and elevating skilled experts, and is not triggering mass layoffs.
Titled "AI and Jobs: This time is no different," the study found that generative AI is currently not causing mass job displacement but is reshaping how work is organized, increasing productivity, and transforming roles.
Ronnie Chatterji, Chief Economist at OpenAI, said, "We are seeing a shift in how work is organized, where AI appears to be complementing human talent. This data offers a window into the transition underway in India."
Chatterji added, "The focus now should be on the practical steps needed to help workers align their skills with the advancing capabilities of AI. Currently, only 4 per cent of firms have trained more than half their workforce in AI, presenting a huge opportunity for growth."
The report states that 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.
"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.
Shekhar Aiyar, Director and Chief Executive, ICRIER, noted that while "everyone has opinions on this matter," the ICRIER-OpenAI study actually "brings evidence to the table."
"The authors have complemented survey findings with in-depth interviews with Indian IT industry leaders to better understand the true impact of generative AI. The results should reassure Indian policymakers without inducing complacency," Aiyar said, but added that while India's IT sector appears to be managing AI adoption relatively well, many firms remain insufficiently prepared for what lies ahead.