Has the IT industry surrendered to the AI overlords?
The IT industry & Big Tech continue to fire thousands indiscriminately. Will the remaining survive this AI-powered skirmish over jobs?
Over 130,000 jobs have already been terminated in the Information Technology (IT) industry in just the first half of 2025, as reported by TechCrunch, a California-based news outlet.
Along with Google, Microsoft, Amazon, and their kin, this statistic also includes Tata Consultancy Services (TCS), which startlingly decided to let go of over 12,000 employees — or 2% of its global workforce. The layoff targeted senior and mid-level employees and will span throughout financial year (FY) 26.
While announcing the layoff, TCS also mentioned that it will explore Artificial Intelligence (AI) for both internal and client-end usage. However, they have not clarified what percentage of the layoff might be linked to AI taking over. Similar possibilities of preferring AI over humans for jobs have been commonly expressed in the IT industry, especially over the past five years — usually alongside layoff announcements.
Could it be that businesses have accepted AI supremacy and surrendered to the imminent AI overlords? And does AI even deserve such deification that major businesses would trust it with their sustenance?
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As a business owner, if it were someday proposed to you that it’s profitable to replace a large portion — say, 30% — of your employees with AI, would you make the shift?
“Honestly, I would absolutely be in favour and give it a try. If it really means that my company will save money and be more efficient, why shouldn’t it be tried?” owner and director of Tall RCM Inc., a New Jersey-based business service provider for the American healthcare industry, Nishant Nanda, said.
In companies like his — which specialise in tasks such as “medical coding” — AI hasn’t taken over yet, but it soon will. “The healthcare part of the service sector hasn’t yet seen AI-linked layoffs. But trials on using AI in healthcare are active, and we might get the desired results any day. Right now, AI isn’t accurate enough to be adopted in healthcare use in our sector, but it’ll soon be, given the rigorous trials.”
Business owners and managers have taken a hard line on cost-cutting by adopting AI. But focusing only on cost-cutting can compromise productivity.
“AI is an undeniable game-changer. However, it’s interesting that the organizational cosnversation is heavily focused on cost savings rather than the potential for productivity gains. Cost-cutting alone is neither a sustainable nor expansive long-term vision for such an innovative, transformative technology,” explained Human Resources (HR) lead Alka Chawla from Upen Group, Texas.
“The AI industry ought to shift the narrative from just ‘saving money’ to ‘making more,’ while also championing the reskilling and transition of the workforce,” Alka said.
Alka believes it is crucial for all HR professionals to: (i) remember the importance of human interaction, (ii) address the potential for bias in AI, and (iii) ensure the creation of ethical, equitable, and inclusive teams.
“The future of HR hinges on the thoughtful integration of technology while preserving the essential human touch,” concluded Alka.
From an Indian perspective, this AI-stoked whirlwind of change could be a “blessing” and a “great revolution,” according to professor Chandan Sharma, faculty of economics and business environment, Indian Institute of Management (IIM), Lucknow.
“India has a lot of skilled workers, but not sufficient investment. AI will prove to be a low-cost, easy, and efficient boost for companies,” Sharma said.
But what about the lost jobs? “Adopting AI will increase both domestic and international competition in all areas, including the non-IT ones and even in many government sectors. This competition will give rise to an expansion, which, in turn, will create more jobs and offer re-employment,” he answered.
“A simple example is when computers first came around. The typewriter experts who couldn’t reskill themselves did suffer adversities, but computers later created new, innumerable jobs and opportunities.” This is not just a change, it’s a revolution, believes professor Sharma.
“It’s another great revolution, and history tells us that, although there will be some groups that might be adversely affected, there will be a net gain with more jobs and re-employment on the way.”
