AI could create 2.73 million jobs in India by 2028: ServiceNow study

Amid intense debates over Artificial intelligence (AI) and generative AI (GenAI) causing job loss going forward, a study by ServiceNow, in collaboration with Pearson, has projected that AI could actually drive employment growth, creating an estimated 2.73 million jobs in India by 2028.

 

The study highlights that tech-driven sectors — particularly retail, manufacturing, education, and healthcare — will require an influx of skilled workers. Retail alone is projected to add 6.96 million roles, presenting opportunities for reskilling in fields such as software application development, and data engineering.

 

This is likely to be followed by manufacturing (adding 1.50 million jobs), education (0.84 million jobs), and healthcare (0.80 million jobs), propelled by expected economic growth and tech transformation.

   

A contrarian view is that India’s demographic dividend, once celebrated as a key economic advantage, may turn into a liability if sufficient opportunities don't emerge for the growing workforce.

 

Shankar Sharma, investor and founder of AI company Gquant, argued in an opinion piece for Moneycontrol: “Too much has been written, said, and marketed about India's demographic dividend. Maybe it was a dividend at some point in time, but we know how dividends have been taxed through our financial policies.”

 

He added a stark warning: “More than 60% of India's economy comes from services, sprawling across all aspects of daily life, from IT and KPOs to finance and legal services. There is nothing — nothing — that AI won’t be able to do better than any individual in these areas, including, perhaps, the CEO.” Sharma believes that the aspirations of India’s youth don’t align with traditional factory jobs, one of the few sectors, he predicts, that will offer long-term employment.

 

Sumeet Mathur, senior vice president & managing director, ServiceNow India Technology & Business Center, said: “AI will be a key catalyst for job creation across India’s growth engines, particularly in roles requiring advanced technical skills. This strategic emphasis will not only create more high-value opportunities for professionals but will also empower them to build enduring digital careers.”

 

ServiceNow and Pearson, both of which deal with the IT industry directly, and, unlike Sharma, are not mere investors, in their report highlighted that tech-related jobs are growing across industries.

 

Leading this trend are software application developers, with an expected increase of 1,09,700 positions. Other notable roles include systems software developers (48,800 new jobs) and data engineers (48,500 new jobs). Web developers, data analysts, and software testers are also on the rise, with projected additions of 48,500, 47,800, and 45,300 roles, respectively.

 

However, what analysts, industry players, and experts agree on is that use of GenAI will mean high productivity gains. For instance, the ServiceNow report shows that systems administrators will experience the largest shift, with 6.9 hours of their weekly tasks automated or augmented by emerging technologies.

 

AI systems engineers will also benefit significantly from GenAI, with half of the total tech impact on this role coming directly from AI technologies. Similarly, implementation consultants are poised to benefit significantly from the integration of GenAI, saving 1.9 hours per week as AI takes over repetitive tasks, allowing them to focus on more strategic projects, the ServiceNow report says.