The Indian job market witnessed a significant reshuffle in hiring dynamics in May 2025, as per the latest Naukri JobSpeak report. The standout performance came from the Artificial Intelligence and Machine Learning (AI-ML) sector, which saw a 25% year-on-year hiring growth—a strong indicator of how businesses across industries continue to integrate AI-ML into their core operations.

In contrast, the overall Information Technology (IT) sector recorded a 5% decline in hiring compared to the same period last year. This signals a noticeable shift in focus within the technology domain, where demand is consolidating around cutting-edge technologies like AI and ML, rather than traditional IT roles.

The AI ML hiring growth in May 2025 was spread across major Indian cities. Hyderabad experienced a 7% increase, while Kochi saw 8% growth, both predominantly driven by senior-level hiring trends. This clearly indicates that companies are looking to onboard experienced professionals who can lead their AI ML integration efforts and provide strategic direction.

Another city that showcased positive movement was Pune, which posted a 4% overall increase in hiring. This growth was significantly influenced by a 26% surge in hiring by startups, many of which are in the tech and innovation domain, reinforcing the city's reputation as a startup hub. Startups are actively recruiting AI ML experts to build scalable and competitive platforms, aligning with the broader AI ML sector hiring in India.

The JobSpeak index, an analytical tool developed by Naukri.com, aggregates data from job listings, recruiter activities, and candidate applications across various sectors and geographies. The AI ML job market trends in India derived from this index reflect a persistent momentum that has sustained over the past year. This is not a one-off spike but part of a consistent hiring trend in AI ML jobs that shows growing maturity in the sector.

While AI ML jobs in May 2025 were a bright spot, several other sectors had mixed performances. Real estate and insurance sectors recorded 5% and 6% growth, respectively. These industries, traditionally not tech-heavy, are increasingly embracing technology and data analytics, requiring more AI ML professionals and tech-savvy talent.

Conversely, retail, telecom/ISP, and banking, finance & broking sectors reported 8–9% declines in hiring. However, a silver lining was observed in unicorns within the banking and financial services space, which ramped up recruitment efforts by 29%. This shows that high-growth, tech-forward financial firms are still aggressively hiring, particularly for AI ML roles, to enhance automation, fraud detection, and personalized banking experiences.

Another critical trend highlighted by the Naukri JobSpeak May 2025 report is the continued demand for senior professionals. Unlike previous hiring cycles where junior or mid-level hiring dominated, May 2025 saw a shift toward strategic hiring for leadership and decision-making roles, especially within AI ML and tech-led startups.

From an industry-wide perspective, this shift underscores a maturing AI ML job market in India. Companies are no longer merely experimenting with AI—they are building entire verticals around it, requiring deep expertise and leadership. As a result, AI ML job opportunities in May 2025 surged, defying broader sectoral slowdowns.

The 5% decline in the IT sector is, therefore, not necessarily a negative indicator but rather a sign of restructuring and specialisation. Companies may be cutting back on traditional roles while diverting budgets to AI ML hiring, focusing on automation, machine learning pipelines, AI-driven development frameworks, and data science applications.

City-wise trends further confirm this evolving hiring landscape. While metros like Bengaluru and Delhi NCR showed mixed signals, Tier-II cities like Kochi and Pune emerged as strong contenders, thanks to their talent pool, startup ecosystems, and cost advantages. The fact that Kochi recorded 8% growth shows that AI ML demand is no longer restricted to top-tier metros.

This is particularly crucial for job seekers and HR professionals tracking the AI ML industry latest growth. With opportunities now spread across geographies and across levels—from entry to executive—both companies and professionals need to adapt to the shifting tides.

Moreover, this data-driven insight reflects not just hiring momentum, but also the underlying digital transformation journey of Indian enterprises. Whether in real estate, insurance, banking unicorns, or startups, the consistent takeaway is that AI ML is now at the core of business innovation.

What also stands out is how Naukri’s JobSpeak Index has become a barometer of India’s economic and employment health. With real-time updates and comprehensive coverage across industries, this index presents a clear picture of demand across verticals, helping stakeholders make informed hiring and career decisions.

As India continues its push toward becoming a digital-first economy, the role of AI ML hiring in shaping the future workforce becomes even more critical. This momentum will likely sustain, if not accelerate, over the next few quarters, especially as more startups enter the fray and legacy companies overhaul their technology stacks.

In summary, while the broader IT sector witnessed a hiring decline of 5%, the AI ML job market in India has bucked the trend with a 25% year-on-year growth in May 2025. Cities like Hyderabad, Kochi, and Pune emerged as growth hubs, primarily fueled by senior hiring and startup expansions. Other industries like real estate and insurance also showed resilience, while banking unicorns significantly increased their headcounts. The Naukri JobSpeak May 2025 report not only tracks these trends but underscores a clear shift toward AI-led innovation in hiring across India.

This shift is a call to action for job seekers, educational institutions, and companies alike: embracing AI ML skills is no longer optional—it's imperative for those aiming to stay competitive in the rapidly evolving tech-driven Indian job market.

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