Not a job killer? Kotak explains why AI won’t lead to IT demand collapse but reset hiring

The Nifty IT index is seeing some buying interest in an otherwise falling market. On Monday, the Nifty declined 2.39% intraday, while the Nifty IT index was down just 0.27%. This is in contrast to what happened a few weeks ago, when Nifty IT was a major drag on the Nifty 50. Has the fear around Artificial Intelligence (AI) — particularly concerns about AI taking jobs and reducing paychecks — eased?

Kotak Institutional Equities believes that though Artificial Intelligence (AI) could slow hiring in India’s IT services sector, the technology could also improve productivity across the broader economy. It expects a potential shift of talent toward manufacturing, and core engineering could partly offset the disruption over time.