Universities Urged to Adapt as AI Skills Dominate Hiring Trends

Hyderabad Leads AI Recruitment as Non-Tech Sectors Drive Job Growth

India’s white-collar job market grew by 3.4% year-on-year in August 2025, according to the latest Naukri JobSpeak report, with artificial intelligence (AI) and machine learning (ML) roles emerging as the fastest-growing segment. This 54% surge in AI/ML hiring reflects a decisive shift in employer priorities, as businesses increasingly seek specialised talent to drive digital transformation, even as traditional IT and software services recorded a 6% decline in overall recruitment. Notably, IT unicorns defied the broader slowdown, posting a 10% increase in hiring. This trend underscores growing confidence in AI technologies, with companies prioritising automation, predictive analytics, and generative AI capabilities over conventional IT functions. In contrast, managerial and administrative roles saw only a modest 3% growth, indicating a clear preference for tech-enabled skill sets.

In-demand job titles now include Machine Learning Engineer, Data Scientist, AI Researcher, Computer Vision Specialist, and Natural Language Processing (NLP) Engineer, reflecting the sector’s rapid evolution. To support this transition, global platforms such as Google AI, MIT OpenCourseWare, HarvardX, and Coursera are offering free and accessible AI and ML courses, enabling professionals, especially freshers and mid-career aspirants, to upskill and enter high-growth domains.

Beyond the technology sector, hiring trends across industries demonstrated resilience. Insurance led with a 24% rise, followed by hospitality (22%) and real estate (18%), all of which are increasingly adopting AI for fraud detection, customer experience enhancement, and smart infrastructure solutions. Additional momentum was observed in BPO/ITES (17%), education (16%), a sector now influenced by AI in personalised learning—alongside oil & gas power (7%), retail (3%), and FMCG (2%).

Conversely, certain industries faced headwinds. Banking and financial services declined by 11%, telecom/ISP dropped by 13%, and the automotive sector slipped by 3%, reflecting broader economic pressures and cautious hiring strategies. Recruitment for freshers with 0–3 years of experience rose by 7%, largely driven by non-IT sectors such as hospitality, education, and real estate. Meanwhile, mid-level professionals (4–7 years) saw a 34% increase, particularly in finance and education, and senior professionals (8–12 years) recorded 16% growth, notably in oil & gas and healthcare.

At the city level, Hyderabad emerged as a frontrunner, registering 10% overall hiring growth and an impressive 45% spike in unicorn-led recruitment. This positions the city as a vibrant hub for AI startups and tech innovation. Strong performances were also noted in Kolkata (+101%), Delhi-NCR (+72%), and Chennai (+67%), while emerging markets such as Jaipur (+26%) and Kochi (+16%) gained traction, particularly for fresher roles.

Commenting on the findings, Pawan Goyal, Chief Business Officer at Naukri, stated that two clear patterns emerged in August: non-IT industries continue to anchor job market growth, and Hyderabad has solidified its position as a hotspot for AI recruitment. This reflects how AI in India, supported by advancements from players such as Microsoft AI, Samsung AI, and Google AI, is rapidly transforming the employment landscape, from AI-generated images in design to predictive analytics in business operations. As AI continues to reshape industries, India’s job market is evolving to reward adaptability, technical proficiency, and innovation across sectors.

Editor’s Note

India’s job market is changing faster than ever, and the latest Naukri JobSpeak report proves it. Traditional IT jobs, which were once the backbone of the industry, have fallen by 6%. On the other hand, hiring in artificial intelligence (AI) and machine learning (ML) has gone up by an impressive 54% year-on-year. This sharp contrast shows that the future of work is moving toward specialised, technology-driven roles. Recent data highlights how strongly India is embracing this change. The country now has the second-largest AI talent pool in the world, with more than 420,000 professionals working in the field. Investments in AI are also growing rapidly,rising at a rate of 30.8% every year. By the end of 2025, India’s AI market is expected to reach nearly ₹978.74 billion, adding significant value to the nation’s GDP growth. Clearly, AI is no longer just an optional tool, it is reshaping industries and changing the types of skills employers want most. As a result, careers in AI are becoming more mainstream. Job titles like Data Scientist, AI Researcher, and NLP Engineer are now some of the most sought-after roles. To meet this demand, free and accessible learning opportunities are becoming crucial. Platforms such as Google AI, MIT OpenCourseWare, and HarvardX are helping both fresh graduates and experienced professionals upgrade their skills. This democratisation of learning ensures that knowledge of AI is not limited to elite institutions or expensive courses.

Major companies are also adapting quickly. Firms like TCS and Wipro have acknowledged that generative AI is making operations more efficient. While this is good for productivity, it also means these companies no longer need to hire as many people in proportion to their revenue growth. This highlights one of the big challenges of AI adoption: while it creates new opportunities, it can also reduce demand for traditional jobs. The Economic Survey 2025 has already raised concerns about this. It warns that AI adoption in a labour-rich country like India could lead to job displacement in several sectors. Early signs of this are visible: industries such as banking and telecom are seeing fewer jobs, while others, like insurance, hospitality, and education, are actually growing because they are finding ways to successfully integrate AI into their operations. In this fast-changing environment, universities have a big responsibility. They must update their programmes to stay relevant, offering flexible, industry-focused courses that prepare students for the roles of the future. At the same time, students should not wait passively. They need to be proactive, exploring AI-related courses and certifications, and staying open to reskilling whenever required. For job seekers, agility is now a key strength; being ready to shift between industries and adapt skills will be essential.

Skoobuzz underlines that in this changing job market, those who embrace change, learn new skills, and stay informed will not only survive but thrive. Those who resist may struggle to keep up. The future of work in India belongs to those who are prepared to grow alongside artificial intelligence.