Artificial Intelligence (AI) took the spotlight in India’s job market in 2025, with over 290,000 AI-related roles advertised. The trend is expected to surge further, with a projected 32% annual growth in AI hiring in 2026, reaching close to 380,000 roles. Across various sectors, roles, and cities, India’s job market witnessed a 5% month-on-month and 15% year-on-year hiring increase by the end of 2025.
The year 2025 marked a period of both expansion and disciplined hiring practices, according to Tarun Sharma, Chief Product and Technology Officer at foundit. AI has transitioned from being experimental to becoming a crucial aspect of workforce planning. In the upcoming year, hiring will be more skill-oriented, focusing on mid-career professionals and expanding across Tier 1 and emerging Tier 2 talent hubs.
The integration of core industries with AI adoption is expected to solidify India’s position as a leading global talent pool. IT-Software and Services dominated the AI job market with a 37% share, followed by BFSI at 15.8% and Manufacturing at 6%. BFSI experienced a 41% year-on-year growth, while Healthcare, Retail, Logistics, and Telecom sectors also saw significant gains, as per the report findings.
The demand for Generative AI and LLM skills witnessed rapid growth, increasing by nearly 60% year-on-year, driven by copilots, chatbots, and enterprise GenAI platforms. Bengaluru remained at the forefront with a 26% share of AI jobs, while Hyderabad saw the fastest growth among Tier 1 cities. Tier 2 cities like Jaipur, Indore, and Mysuru also showed notable advancements in AI job opportunities.
In 2025, the job market saw the most substantial growth in mid-level and senior mid-tier positions, indicating a preference for professionals with proven execution capabilities, though not necessarily at the highest leadership levels, the report highlighted.
