Caution! Millions of Jobs in India at Risk Due to the Advent of AI; These Sectors Will Be Hit the Hardest

AI: According to a report, jobs in areas such as back-office operations, data management, and customer service are most likely to be impacted by AI.

The adoption of Artificial Intelligence (AI) and automation is accelerating rapidly across India. Companies are embracing new technologies to streamline operations and reduce costs; however, amidst this transformation, a significant challenge appears to be looming over the workforce. The recently released SHRM India Skill Intelligence Report 2026 warns that millions of jobs could be affected over the next few years—particularly in sectors characterized by repetitive tasks.

According to the report, roles in back-office operations, data management, and customer service are the most vulnerable to disruption by AI. Estimates suggest that within the next three years, automation could increase in approximately 28 percent of back-office roles. Concurrently, about 24 percent of jobs related to data and reporting face a looming threat. In the customer service sector, the growing deployment of AI chatbots and automated systems could lead to changes in roughly 21 percent of existing roles.

To compile this report, consultations were held with approximately 198 senior HR professionals and learning experts from across the country. Experts believe that India possesses a distinct advantage by having one of the world's youngest workforces; however, if employees are not provided with timely training in new technologies, this opportunity could quickly transform into a formidable challenge.

The report highlights India's inadequate skill training infrastructure as a primary cause for concern. Statistics indicate that only 2.3 percent of the workforce in the country receives formal training—a figure that stands in stark contrast to many developed nations, where this percentage is significantly higher. Consequently, a large segment of India's population is currently deemed ill-prepared to meet the demands of the AI ​​and digital skills landscape.

The report further reveals that while companies are indeed investing financial resources in training initiatives, the methodologies currently being employed are proving to be largely ineffective. The majority of the budget is being allocated to online courses and classroom training, while there is extremely minimal investment in practical and hands-on learning. This is precisely why employees are failing to acquire the necessary experience required for actual work.

In adopting AI, companies face challenges that are not merely technical in nature, but also pertain to leadership and investment. Many companies remain unconvinced about making substantial investments in AI. Some firms believe that securing an adequate return on investment remains a significant challenge. Furthermore, concerns have also been raised regarding a shortage of green and sustainability skills.