AI Skills in Demand as GenAI Affects White-Collar Hiring

Generative Artificial Intelligence (GenAI) is putting pressure on some white-collar job opportunities in South Asia, while demand for professionals with AI skills is increasing. The trend highlights the changing requirements of employers and the need for workers to develop skills that match evolving workplace demands.

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World Bank research highlights the impact of GenAI on entry-level employment and the growing demand for AI-related skills.

The World Bank’s South Asia Development Update: Jobs, AI, and Trade, released in October 2025, found that monthly job listings had fallen by around 20% in occupations most exposed to AI and least likely to benefit from human-AI complementarity.

The finding applies to a specific group of occupations across South Asia. It does not indicate a 20% decline in all white-collar jobs or overall hiring in India.

Demand for AI Skills Continues to Grow

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The World Bank’s analysis found that the share of AI-related job postings in South Asia more than doubled, rising from 2.9% in January 2023 to 6.5% in March 2025. Demand for AI skills also grew faster than demand for other skills during this period.

The report noted that jobs requiring AI skills commanded a wage premium of nearly 30% over other professional roles in the region.

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This indicates that employers are placing greater value on AI-related capabilities, although the premium does not guarantee higher salaries for every professional who acquires these skills.

The impact of AI varies across occupations. Roles involving tasks that can be automated may face greater pressure, while professionals who can use AI to improve productivity and apply their judgement may benefit from the technology.

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Entry-Level Hiring Faces Fresh Challenges

Young and moderately educated workers in sectors such as business services and information technology are among those identified by the World Bank as vulnerable to AI-related changes.

For employers, the shift raises questions about how entry-level employees will gain experience if AI takes over some routine tasks traditionally assigned to junior staff. Organisations may need to review how they recruit, train and develop early-career employees.

At the same time, AI adoption does not automatically mean that jobs will disappear. Its effects will depend on the tasks involved, the extent of adoption and whether technology replaces or supports human work.

What It Means for HR Professionals

HR teams will need to assess how AI is changing job roles and identify the skills employees require. Reskilling, practical AI training and internal mobility can help organisations prepare their workforce for changing responsibilities.

For HR professionals, learning to apply AI in recruitment, employee services, learning and development, and HR operations can help them identify opportunities to improve existing processes.

Career development will also require greater attention to continuous learning. Along with functional expertise, professionals may need to build AI literacy, problem-solving skills and the ability to apply technology responsibly.

As organisations adopt GenAI, the ability to learn new skills and deliver greater value at work is becoming an important consideration for both employees and employers.