**The big picture:** A Nomura survey indicates AI is fueling job growth within India's IT sector, concurrently leading to a significant reduction in entry-level hiring. **Why it matters:** This trend signals a critical shift in talent demand, compelling staffing firms and corporate HR leaders to adapt their acquisition and development strategies. **Between the lines:** - 55% of surveyed Indian IT companies reported cutting entry-level hiring. - Only 14% saw a decline in senior-level hiring, highlighting a preference for experienced talent. - AI adoption is creating new roles that often demand specialized, advanced skills. **Staffing & HR impact:** Recruiters must pivot from high-volume entry-level placements to specialized, skill-focused sourcing, potentially impacting gross margins and necessitating robust talent development programs. Companies face a widening skills gap for emerging AI roles while entry-level candidates struggle to find opportunities. **The bottom line:** Continuous upskilling is paramount for navigating the AI-driven transformation of the global labor market.