AI Is Creating More Jobs Than It Eliminates in Asia

AI Is Creating More Jobs Than It Eliminates in Asia—But Entry-Level Roles Face Pressure

Artificial Intelligence is reshaping Asia’s employment market. While concerns about job losses continue, new research from Nomura suggests that AI-related hiring has so far exceeded reported layoffs across the region.

Nomura’s analysis of 69 public company announcements—primarily covering 2022 to August 2026—identified approximately 131,000 AI-related hires, compared with about 61,000 job losses.

The findings indicate that AI is currently creating more jobs than it removes. However, the benefits are concentrated in technology, while entry-level and routine roles face increasing pressure.

Key Highlights

• 131,000 AI-related jobs created
• 61,000 AI-related job losses
• More than 90% of new jobs were in technology
• Financial services accounted for around 58% of documented layoffs
• Technology represented approximately 30% of AI-related job cuts
• Junior and routine roles face the greatest automation risk

These figures are based on publicly announced hiring and layoffs, not the entire Asian labour market. They should therefore be considered an early indication of AI’s employment impact.

Technology Leads AI Job Creation

More than 90% of the new AI-related positions identified in the study were within the technology sector.

Hiring has primarily focused on:

• AI development
• Data annotation
• Model training
• Data operations
• Machine learning
• AI infrastructure

In India, demand has grown for data, language and AI-services professionals. China’s hiring has focused more heavily on skilled graduates capable of developing and scaling proprietary AI models.

Outside technology, AI hiring remains limited to specialized positions such as AI risk analysts, governance professionals and autonomous-vehicle experts.

Routine and Entry-Level Roles Face Pressure

AI is increasingly automating repetitive responsibilities such as:

• Data entry
• Banking reconciliation
• Customer support
• Basic compliance processing
• Routine software testing
• Entry-level coding

A survey of 651 Indian IT companies cited by Nomura found that 55% reported lower entry-level recruitment, while only 14% reported reduced hiring for senior roles.

Experienced professionals remain valuable because they bring business knowledge, leadership, communication and decision-making skills that AI cannot easily reproduce.

Financial Services Lead AI-Related Job Cuts

Financial services accounted for approximately 58% of documented AI-related layoffs.

Banks and financial institutions are using AI to automate customer support, compliance, transaction processing and back-office operations. Technology represented around 30% of reported job reductions, particularly in lower-skilled and repetitive technical roles.

AI-related job losses remain limited in sectors requiring physical work or complex human interaction, including construction, healthcare, education and skilled trades.

India at the Centre of the AI Workforce Shift

India is particularly exposed because of its major role in IT services, business-process outsourcing and back-office operations.

Although AI is reducing demand for some support and administrative roles, it is also generating opportunities in AI implementation, data services and enterprise transformation.

The early impact appears positive overall, but employees displaced from traditional roles may not automatically qualify for newly created AI positions. Reskilling will therefore be critical.

What This Means for IT Professionals

Professionals can prepare for the changing employment market by building skills in:

• Generative AI
• AI agents
• Machine learning
• Data engineering
• Cloud platforms
• MLOps and LLMOps
• Cybersecurity
• AI testing
• Responsible AI and governance
• Intelligent automation

Fresh graduates should focus on practical projects, internships, AI-assisted development and business problem-solving rather than theoretical knowledge alone.

What This Means for Fresh Graduates

The decline in entry-level recruitment presents a serious challenge, but it does not remove the need for new talent.

Fresh graduates can improve their opportunities by focusing on:

• Practical projects rather than theoretical knowledge alone
• Using AI tools responsibly during software development
• Building a visible portfolio
• Learning data and cloud fundamentals
• Developing communication and presentation skills
• Understanding how businesses use technology
• Gaining industry-recognized certifications
• Participating in internships and real-world assignments

Graduates who can use AI to improve their work may be better positioned than those competing directly against automation in repetitive roles.

myTectra AI News Analysis

AI is not simply eliminating employment—it is changing where jobs are created and which skills employers value.

The most significant challenge is the mismatch between automated roles and newly created AI positions. Entry-level professionals will need practical technical skills, business understanding and the ability to work effectively with AI tools.

For learners and IT professionals, continuous upskilling will be essential to remain competitive as businesses accelerate AI adoption.