AI and ML demand rises 54% in August with non-IT sectors leading growth

AI and ML demand rises 54% in August with non-IT sectors leading growth

A Surge in AI and ML Hiring

In August 2025, the demand for Artificial Intelligence (AI) and Machine Learning (ML) professionals experienced a remarkable 54% increase, according to the latest Naukri JobSpeak report. This surge signifies a pivotal shift in the job market, highlighting the growing integration of AI and ML technologies across various industries. Notably, non-IT sectors such as insurance, hospitality, and real estate have emerged as significant contributors to this trend, challenging the traditional dominance of IT companies in the tech talent arena.

The Broader Hiring

While the overall white-collar job market saw a modest 3% growth in August, the AI and ML sectors outpaced this average by a substantial margin. In contrast, the broader IT and software services sector experienced a 6% decline in hiring, underscoring a notable divergence in employment trends. Interestingly, IT unicorns bucked this downward trend with a 10% increase in recruitment, particularly in AI and ML roles, indicating a targeted investment in specialized tech talent.

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Sectoral Breakdown

The surge in AI and ML hiring is predominantly driven by non-IT sectors, reflecting a strategic pivot towards data-driven decision-making and automation. Key sectors leading this charge include:

  • Insurance: A 24% increase in hiring, as companies seek to leverage AI for risk assessment and customer service enhancements.
  • Hospitality: A 22% rise, with AI applications in personalized guest experiences and operational efficiency.
  • Real Estate: An 18% growth, driven by AI's role in property valuation, market analysis, and customer relationship management.

Other sectors such as education (16%), BPO/ITES (17%), and oil & gas (7%) also reported notable increases, indicating a widespread adoption of AI and ML technologies across diverse industries.

Geographic Hotspots

Hyderabad has emerged as a significant hub for AI and ML talent, with a 10% overall growth in hiring and a 45% surge in unicorn-related recruitment activity. This trend underscores the city's growing prominence as a startup ecosystem, attracting both established companies and emerging ventures seeking to capitalize on AI advancements.

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The Talent Demand

The escalating demand for AI and ML professionals is reshaping the talent acquisition landscape. Companies are increasingly seeking candidates with specialized skills in areas such as natural language processing, computer vision, and predictive analytics. This shift is prompting educational institutions and training providers to adapt their curricula to equip the workforce with the requisite competencies.

Moreover, the rise in fresher recruitment, particularly in non-IT sectors, indicates a growing emphasis on nurturing new talent to meet the evolving needs of the AI-driven job market. This trend presents opportunities for educational institutions to collaborate with industries in developing targeted training programs that align with market demands.

Challenges and Opportunities

While the surge in AI and ML hiring presents numerous opportunities, it also brings forth challenges. The rapid pace of technological advancement necessitates continuous learning and adaptation, posing a potential skills gap in the workforce. Additionally, the integration of AI and ML technologies raises concerns regarding data privacy, ethical considerations, and the potential displacement of jobs.

Addressing these challenges requires a concerted effort from governments, educational institutions, and industries to foster an environment conducive to responsible AI adoption. Initiatives such as upskilling programs, ethical AI frameworks, and policies promoting inclusive growth are essential to ensure that the benefits of AI and ML advancements are equitably distributed.

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Conclusion

The 54% surge in AI and ML hiring in August 2025 marks a significant milestone in the evolution of the job market. The increasing adoption of AI and ML technologies across non-IT sectors signifies a paradigm shift, where data-driven decision-making and automation are becoming integral to business operations. As industries continue to embrace these technologies, the demand for specialized AI and ML talent is expected to persist, presenting both challenges and opportunities in the evolving employment landscape.

kushagra sanjay shukla

Masters in Computer Applications/data analytics

1mo

Fantastic

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