Kochi: Indian IT companies, which have cut back on recruitment due to AI uncertainty and the predicted recession in the US, are picking up steam as it becomes clear that neither will be affected immediately. Those who gave the offer letter were called to work in the company.

It was clear that expectations were high about artificial intelligence (Generative AI), which was predicted to completely change the world economy and business scene. Experts are now pointing out that the changes will take 4-5 years rather than a few months.

Share prices of major US AI chip makers such as Intel and Nvidia fell last week as part of this realization. Nvidia shares fell 14%. It also led to a global stock market crash. The US economy is forecast to grow at a rate of 1.7%. This is a sign that there will be no recession.

IT companies have reduced the hiring of engineering graduates. The Indian IT sector, which used to recruit more than 5 lakh people annually, took 60,000 people last year. Those who gave the offer letter had online AI training. Existing techies were also ‘upskilled’ to AI.

AI is only ‘hype’ in experience

4 Reasons Why AI Failed – 1. The actual use of AI is much less. Not even 7% of companies worldwide use it. 2. Not many people need AI. You can’t change just because of a trend. 3. Fears of job cuts are misplaced. 94% of companies using AI did not lose jobs. 4. Instead of reducing the number of employees, the productivity of existing employees has increased. Thus productivity increased.

What matters is where Gen AI can be used. Call centers are being replaced by AI software. AI will answer better than human. But AI will take years to become widespread.

V.K. Mathews