Artificial intelligence may be driving unprecedented efficiency gains, but its impact on employment remains a growing concern. At the AI Impact Summit 2026, Former HCL Technologies CEO Vineet Nayar warned that IT companies may prioritize profit over job creation as AI adoption accelerates, potentially deepening employment challenges in the sector.
Vineet Nayar warned that Indian IT companies will remain focused on profits rather than employment, amid rapid growth in AI. "From an employment point of view I think it is very important for us to understand that Indian companies, including Indian IT companies, are going to be profit-driven and therefore if you believe that they are going to create employment you must be dreaming. Therefore, the question is how do we create employment in this environment, and that employment comes from mass scale startups, which is what this government has already doing," Nayar said.
The growth of AI brings one question. Will AI wipe out jobs? Let’s take an example of a recent incident. In January 2026, Anthropic released Cowork, an AI tool for enterprises that requires no coding abilities. The release of AI automation tools and a legal field product contributed to a broad sell-off in software stocks. It has intensified concerns around AI models replacing the utility of stand-alone business apps and platforms.
Software giant Oracle Corp. recently raised $25 billion to fund its AI plans, drawing $129 billion of demand. Meta Platforms Inc. and Microsoft Corp. have also announced huge spending plans for 2026. Google's parent company, Alphabet Inc., raised nearly $32 billion in debt to support its AI initiatives.
Massive borrowings by tech giants have already started to raise concerns about potential pressure on bond valuations. Securities are expensive by historical standards; some investors are also concerned about the longevity of the AI boom. Analysts have even shared doubts around its disruptive effects on related firms, such as the Software-as-a-Service (SaaS) sector.
These borrowings raise broader questions about how major tech firms are funding the next phase of AI infrastructure and whether debt-backed expansion could become a defining feature of this cycle. Whatever the consequences, technology firms will focus on getting maximum profit out of these deals.
Artificial intelligence, specifically large language models and predictive analytics systems, can analyze massive datasets, derive insight from them, and automate structured, repetitive, or data-heavy tasks. AI reduces time spent on repetitive documentation and accelerates decision-making. These efficiencies translate into cost savings and faster production times for organizations.
Global MNCs such as Amazon, FedEx, Ericsson, and others have announced restructuring tied partly to automation and efficiency drives.
In a recent interview, Microsoft AI CEO Mustafa Suleyman said, “White-collar jobs, essentially those sitting in front of computers whether lawyers, accountants, project managers, or marketers… most of these tasks will be fully automated by AI within the next 12 to 18 months."
Also Read: AI vs White-Collar Jobs: Why Professionals are Transitioning to Tech Roles in 2026
According to Stanford University’s Institute for Human-Centered AI report, India ranks third globally in AI competitiveness, trailing the US and China. Big AI companies such as OpenAI and Anthropic are setting up operations in India, courting enterprise customers, developers, and government agencies. Google and Meta are expanding data centers to serve one of the fastest-growing markets for models such as ChatGPT, Gemini, and Claude.
While AI offers many process improvements, it also has major limitations. The principal limitations include the lack of contextual judgment, emotional intelligence, and ethical reasoning in AI systems. Professionals who treat AI as a collaborator rather than a competitor are better positioned to thrive.