India: AI Job Demand Surges 25% in May 2025 as Traditional IT Hiring Slows
India's Artificial Intelligence (AI) and Machine Learning (ML) job market experienced a sharp 25% surge in hiring in May 2025, despite a 5% year-on-year decline in overall IT sector hiring, according to Naukri.com's Job Speak Report. This signals a structural shift in the tech workforce, positioning AI/ML as central pillars of future employment.
“The continued momentum in AI/ML hiring across metros and demand for senior professionals stands out in an otherwise stable job market,” said Pawan Goyal, Chief Business Officer at Naukri.com. The data suggest a growing preference for AI-centric roles over traditional IT functions, a trend that has been sustained over the past year and is gaining further traction.
Sectors and Cities: Divergence in Growth Patterns
While IT is hiring contracts, other sectors are showing signs of expansion. Real estate hiring increased by 5%, and insurance hiring rose by 6%. New-age BFSI unicorns experienced an impressive 29% growth in hiring, driven by investor confidence and digital adoption.
On the other hand, the traditional BFSI, telecom, and retail sectors experienced declines of 8–9%, indicating a lag in digital transformation. Geographically, Hyderabad recorded a 7% increase in IT hiring, Kochi grew 8%, and Pune's startup hiring surged 26%, despite a modest 4% overall rise.
Also Read: India Launches BharatGen: World's First Govt-Funded Multilingual AI LLM
AI Reshapes the Talent Landscape
As AI becomes the primary engine of tech hiring, professionals are increasingly pushed to reskill. The May 2025 data highlights that AI and ML roles are not just gaining momentum—they're redefining the future of IT recruitment in India. With Tier-II cities emerging as new tech hubs, the transformation is as geographic as it is technological.
