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Generative AI ups demand for skilled workers: Study

Generative AI ups demand for skilled workers: Study

NEW DELHI: The introduction of generative AI has resulted in moderation in hiring at the entry level, increased demand for skilled mid-level workers, and provided “considerable stability” at senior level, an ICRIER study has said.“Researchers note 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 generative AI is primarily functioning as a productivity-enhancing complement to technical and analytical work, rather than a substitute,” said the report, which was backed by OpenAI and based on a survey of over 650 firms.Roles such as statisticians and mathematicians, application developers and database designers and administrators were among the most exposed — and had the highest demand — while HR, legal and finance professionals were least. The most impacted roles and skills include data entry and clerical work, followed by manual testing, manual quality assurance, and entry level programming.Among business functions in IT companies, software development and engineering, followed by IT infra and cloud services and project management were seen to be the most affected, the survey showed. The report said AI adoption is reshaping hiring priorities toward hybrid skills profiles combining domain expertise and AI and data-related technical skills, instead of narrow specialisation.While half the companies surveyed said they were investing in internal awareness and workforce reskilling, the report said: “The cause for concern, however, is that IT firms are not hiring enough workers with skills in large language model operations or expanding their R&D divisions, and, most importantly, are not investing adequately in training and upskilling. The shortage of qualified AI trainers, limited AI skills among new labour market entrants, and policy and regulatory uncertainty surrounding AI are challenges that must be urgently addressed.”

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