For many workers, work is not only a source of income but also a guarantee of financial stability, an opportunity for career growth, and a basis for future planning. However, the implementation of artificial intelligence (AI) is transforming companies' working methods and hiring processes. As a result, employees may face increased competition for fewer vacancies, and demanding a salary increase, even while keeping their job, may become more difficult.
Philip Lane, Chief Economist of the European Central Bank, warned that AI is capable of weakening workers' bargaining power. This could put pressure on wage growth rates and lead to a decrease in the share of labor in overall income. Although Lane's warning mainly concerns Europe, similar issues are arising in the Indian labor market. In India, there is growing demand for AI-related skills, while opportunities for entry-level specialists and other employees are increasing slowly.
Amid these changes, a key question arises: will workers be able to maintain their ability to demand better pay, promotions, and improved working conditions?
In September 2026, the growth of the white-collar market in India was uneven. Hiring of specialists related to machine learning and AI increased by 20% year-on-year, while overall hiring in the white-collar sector grew by only 1%. Hiring among newcomers with zero to three years of experience also increased by just 1%. Meanwhile, there was a 2% decline in hiring specialists with four to seven years of experience.
This data indicates that despite the slowdown in the overall hiring pace, companies favor candidates with narrow, specific skills. This may affect not only job searching. If positions are being cut in a certain area, employees have reduced chances either to change companies for better pay or to demand a higher salary based on another offer.
Nevertheless, these hiring figures themselves do not prove that AI is weakening workers' bargaining power. They point to ongoing changes that must be considered as companies revise their skill and role requirements.
India's experience also shows that the impact of AI cannot be viewed solely as a story of layoffs. According to a Nomura report, first received by Bloomberg News, 83,100 AI-related vacancies were registered in India. In comparison, 31,921 cases of layoffs and departures were recorded.
These figures show that the process of creating new jobs through AI and the influence of AI on existing jobs can happen simultaneously. However, new roles may require completely different qualifications and experience than those being automated. For example, an employee whose role is related to customer support cannot automatically apply for an AI engineer position after their work is automated. This gap in skills and qualifications can hinder some employees' access to new opportunities, even if companies are actively hiring for certain positions.
A recent report on the operation of AI data centers also mentions a growing demand for electricians, construction workers, and other technical specialists supporting AI infrastructure. This suggests that AI is influencing not only software developers or tech companies but is also changing demand across various professions.
The impact of AI on wages is also an important part of this discussion. Companies use AI to increase speed and production. Under such conditions, they may focus more on employees' performance results, their ability to interpret responses from AI, and their decisions when using technology.
The question is: will the benefits of increased productivity be distributed among employees in the form of higher wages, or will they primarily go to companies through cost reduction and increased output?
According to a recent global workforce report by Workday, 28% of business leaders surveyed expected staff reductions due to AI. At the same time, 40% believed that AI would help existing employees handle a larger workload. This opens up another possibility: an employee's job might be retained, but they are expected to deliver higher productivity. Their duties may change, and competition for promotion will increase.
AI is capable of creating new opportunities, boosting productivity, and fostering business growth. However, it is not guaranteed that the benefits will be distributed evenly across different professions, experience levels, and skill groups. The task for employees is to understand how their role is changing and to acquire skills useful in an automated environment. Companies, meanwhile, have the task of determining how they will share the benefits of increased productivity with employees through higher wages, career advancement, and training opportunities.
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