Is artificial intelligence killing the job market? Not according to this study
A large-scale study by Nomura Holdings indicates that AI creates more jobs than it eliminates. Despite concerns, the number of new positions generated in the early stages of the AI revolution exceeds the number of jobs lost.
Is the AI revolution really killing the job market? A large-scale study by the Japanese investment bank Nomura Holdings, which focused on India, actually raises opposite findings: AI creates more jobs than it eliminates.
"The findings contradict the narrative of massive job losses due to the growing adoption of AI," the bank's report stated, according to a Bloomberg report. — "At least in the early stages of the AI revolution, the number of jobs created is greater than those lost. This pattern is evident in large economies like India and China, as well as in the Philippines, where outsourcing plays a central role in the labor market."
Nomura's findings focus on India. Beyond the large scale of the Indian economy, the country serves as a hub for back-office services for international companies. As a result, according to the report, the country's economy is experiencing the "greatest absolute impact" of AI on the labor market, which makes India the "ground zero" of technology assessment.
According to the findings, between 2022 and August 2026, India recorded an AI-dependent loss of 31,921 jobs (as a result of layoffs or the cancellation of positions). However, in the same period, 83,100 jobs related to AI were created.
"Most of the layoffs are of service and support center staff who were replaced by chatbots, while most of the hires are of IT graduates, which companies attribute directly to AI demand," it was written.
The trend is also true in a broader geographical view: across Asia, AI-related hires totaled 130,758 jobs during the study period, more than 90% of them in the technology sector. At the same time, job losses as a result of AI stood at 60,654 jobs, about 60% of them in financial services.
The report emphasizes, however, that behind the numbers hides a reality where AI creates new winners and losers in the labor market.
"Since workers who lost their jobs rarely move to AI engineering roles, the numbers mask the pain in the way the market is splitting," it was written.
