LinkedIn’s AI Labour Market Report 2026 has revealed that AI engineering job postings in India rose 59.5 per cent year-on-year, the fastest growth among major global markets.
The report underlines India’s rising position in the global artificial intelligence workforce, with Bengaluru continuing as the country’s leading hub for AI talent and hiring.
Bengaluru remains core AI hub
While Bengaluru continues to dominate AI recruitment, other Indian cities are also emerging strongly.
Hyderabad recorded a 51 per cent increase in AI-related hiring, while Vijayawada saw a 45.5 per cent rise, indicating broader growth beyond traditional metro centres.
The report suggests India’s AI ecosystem is expanding geographically, creating fresh opportunities for talent across multiple cities.
Skills companies want most
According to LinkedIn, employers are increasingly seeking practical and deployment-focused AI skills rather than only academic expertise.
High-demand capabilities include:
- AI agents
- AI productivity tools
- Azure AI Studio
- Intelligent Agents
- Automated Feature Engineering
Malai Lakshmanan noted that execution-focused AI skills linked to real-world deployment are seeing strong demand.
Shift in hiring trends
Large enterprises still employ the biggest share of AI talent, but small and medium businesses are rapidly adopting AI tools and investing in upskilling.
This signals a wider market shift where AI is no longer limited to major tech firms but is entering mainstream business operations.
Outsourcing sector faces pressure
Separately, BBC cited analysis by Jefferies suggesting automation could reduce traditional managed-services revenue in India’s outsourcing sector.
Experts believe this may reshape hiring patterns, with stronger demand for AI integration, automation management and platform engineering roles.