The demand for Artificial Intelligence jobs continues to rise sharply, signaling a significant shift in the tech hiring landscape in India. According to the Naukri JobSpeak report, the AI and Machine Learning (ML) domains registered a remarkable 25% year-on-year growth in May 2025, even as the broader information technology (IT) sector experienced a 5% decline in hiring during the same period.
This divergence highlights the changing priorities of tech employers, who are now investing more in future-ready skills like AI and ML while scaling back on traditional roles.
“In an otherwise stable job market, what stood out in May was the continued momentum in AI/ML hiring across metros alongside steady demand for senior professionals, a trend that’s held firm over the past year,”
— Pawan Goyal, Chief Business Officer, Naukri
Steady Overall Hiring Despite IT Decline
While the IT sector witnessed a modest contraction, overall hiring activity across industries remained stable in May. Several key sectors posted encouraging growth:
- Real Estate showed a 5% increase in hiring.
- The Insurance sector grew by 6% year-on-year.
- Notably, new-age banking and financial services, including fintech and unicorns, recorded a 29% jump in hiring.
However, more traditional segments such as legacy banking, telecom, and retail faced hiring slowdowns, with each sector showing a decline of 8–9% compared to the previous year.
Metros and Tier-2 Cities Lead AI Hiring Trends
The report also identified emerging metros and tier-2 cities as new hubs for AI and tech recruitment.
- Hyderabad and Kochi stood out with 7% and 8% increases in hiring, respectively. Much of this growth is attributed to senior and mid-level roles in AI and data-driven functions.
- Pune saw an overall hiring growth of 4%, largely driven by its thriving startup ecosystem. Within this segment, hiring spiked 26%, pointing to a strong demand for AI and ML professionals in innovative, tech-led ventures.
These numbers highlight a growing decentralization of tech hiring, with companies tapping into skilled talent pools outside traditional IT cities like Bengaluru and Mumbai.
What This Means for AI Job Seekers and the IT Industry
The shift toward Artificial Intelligence jobs marks a broader industry transformation. Organizations are rapidly modernizing their technology stacks, automating processes, and building data-driven strategies—all of which require specialized AI and ML talent.
For job seekers, this signals a lucrative opportunity. Upskilling in AI-related domains, especially in areas like natural language processing, computer vision, and predictive analytics, could offer a strong edge in the job market.
For IT firms, the decline in general hiring alongside a spike in AI demand means it’s time to rethink workforce strategies and invest in upskilling or hiring for roles that align with the future of technology.
Conclusion
May 2025’s hiring trends underscore one clear message: Artificial Intelligence jobs are leading the next wave of tech employment. While traditional IT roles may be tapering off, the AI job market continues to expand across sectors and cities. Companies embracing this shift early are not just future-proofing their teams—they’re gaining a competitive edge.
