Post Content AI hiring momentum is no longer limited to major tech hubs, smaller cities too are gaining ground amid growing enterprise adoption. (Image: FreePik)
Artificial intelligence (AI) is briskly progressing and so is the demand for expertise in AI. The demand for such talent is accelerating in India too with AI engineering job postings rising by 59.5 per cent year-on-year, according to a report by LinkedIn. This is reportedly the highest growth among major global markets.
The AI Labor Market Report 2026, published by LinkedIn, underscores that while traditional tech hubs such as Bengaluru continue to anchor hiring, this momentum is increasingly spreading to other cities. While Hyderabad recorded a 51 per cent rise in AI hiring, Vijayawada saw a 45.5 per cent increase, indicating growing opportunities beyond tier-1 cities.
This rise is being driven by widespread AI adoption across industries. According to the report, large enterprises are the biggest employers of AI talent as they invest heavily in infrastructure, governance, and large-scale deployment.
However, small and mid-sized businesses (SMBs) are also emerging as key contributors, essentially bridging the gap between experimentation and enterprise-level adoption.
The report also points to a diversification of AI talent across sectors. For instance, in manufacturing, AI engineering talent has expanded fourfold, reaching 2 per cent of the workforce in 2025.
“Applied AI skills such as AI agents and productivity tools are seeing strong growth, as they are directly tied to real-world deployment,” said Malai Lakshmanan, head of engineering at LinkedIn India.
Lakshmanan added that engineers who can move from experimentation to execution will be best positioned to capitalise on the opportunity.
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Among the fastest-growing skills in demand, particularly among SMBs, are AI Agents, AI Productivity tools, Azure AI Studio, Intelligent Agents, and Automated Feature Engineering. On the other hand, AI prompting and agent-based systems are becoming crucial in sectors like manufacturing.
The report suggests that professionals who are looking to enter or grow in the AI domain should focus on practical, hands-on capabilities. It also recommends focusing on targeted job searches and demonstrating real-world applications of AI through projects and tools.
LinkedIn’s findings underline a structural shift in India’s AI job market, with demand no longer confined to major urban centres. As adoption deepens across industries and company sizes, the country’s AI talent landscape is becoming more distributed as well as increasingly competitive.
