For the next 12 to 18 months, experts predict that AI software plugins will have a significant impact on IT employment

Artificial intelligence tools from companies like Anthropic are expected to impact several roles in the IT services industry over the next 12–18 months, according to industry experts. New AI-powered software plugins are increasing productivity and automating routine work, which may affect between 6% and 20% of employees in certain IT and business functions.

Experts say AI adoption by enterprises could boost productivity by 30–40%. Roles such as coding, software maintenance, sales and marketing, legal work, and data analysis are considered the most vulnerable as many of these tasks can now be automated.

Kapil Joshi, chief executive of IT Staffing at Quess Corp, said tools like Claude Cowork can automate multi-step tasks such as organizing files, drafting reports, and converting raw data into structured outputs. These tools aim to reduce repetitive work and allow professionals to focus on more strategic and higher-value activities.

Companies are also using platforms like the Artificial Intelligence Platform from Palantir Technologies and Claude Cowork from Anthropic to automate legal, financial, and software maintenance tasks that were previously handled manually.

The rise of autonomous AI agents is also creating challenges for traditional tech service business models that rely on seat-based pricing and billable hours. Since a single user can now produce work that previously required multiple employees, companies may need to rethink how services are delivered.

Gaurav Vasu, CEO and founder of UnearthInsight, said people-heavy service models could face margin pressure in the short term. However, he added that companies that shift from junior-led work to expert-driven, AI-supported delivery models are likely to become stronger in the long run.

Neeti Sharma, CEO of TeamLease Digital, said the overall number of jobs companies hire for could decline by around 25% as AI adoption grows.

Industry body NASSCOM reported that India’s total workforce in IT and global capability centres grew only 2.3% in FY26 to reach about 5.95 million employees. This resulted in a net addition of around 135,000 workers during the year, slightly higher than the 133,000 added in FY25 but still one of the slowest growth rates in recent years.

Despite the disruption, experts believe new opportunities will also emerge. Sharma noted that while hiring volumes may decrease in the short term, long-term demand could increase due to investments in areas like data centres and advanced technology infrastructure.

In 2025, companies hired heavily for roles such as MLOps specialists, cloud architects, and cybersecurity experts. By 2026, these roles have evolved into positions like ML platform engineers, cloud modernisation architects, and cybersecurity engineers focusing on zero-trust systems, identity management, and AI security.

Joshi added that the shift is more of an evolution than a sudden disruption. AI tools are helping increase efficiency while enabling professionals to focus on creative work, strategic thinking, and complex problem-solving where human skills remain essential.