Nandan Nilekani said AI could make large companies "net job losers" in the coming years.
He expects millions of small businesses to drive India's future job creation.
Nilekani also called for AI-led innovation, easier credit and portable social security benefits for workers.
AI Could Turn Large Companies Into Net Job Losers While Small Businesses Create Jobs, Says Nandan Nilekani
The Infosys co-founder said AI is likely to automate routine work in large companies, while future employment growth will increasingly come from small businesses supported by simpler regulations, digital platforms and AI tools
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Infosys co-founder Nandan Nilekani on Thursday said India's future job creation is likely to come from millions of small businesses rather than large corporations, arguing that artificial intelligence (AI) will make highly structured organisations more vulnerable to automation.
Speaking at an event organised by the National Council of Applied Economic Research (NCAER), Nilekani said large companies are more exposed to AI because many jobs are built around repetitive and well-defined tasks that can be automated.
"Large companies will probably be net job losers in the coming years," Nilekani said, adding that workers in small businesses typically perform multiple roles, making them harder to replace with AI.
Small Businesses Will Drive Jobs
According to Nilekani, India's long-term employment growth will depend on creating an environment where small businesses can expand and hire more people.
He said easier access to formal credit through the Account Aggregator framework, wider market access via the Open Network for Digital Commerce (ONDC), simpler regulations and AI-powered business tools could help millions of entrepreneurs grow.
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Nilekani argued that these measures would strengthen small enterprises while creating more employment opportunities across the country.
Focus on AI Use Cases, Not Just Infrastructure
Nilekani said India should prioritise applying AI to solve real-world problems rather than competing primarily in areas such as semiconductor manufacturing, data centres or large language models.
He said AI should be made available in Indian languages and through voice-based interfaces to improve access to knowledge, especially for people who are not comfortable using English. "India will become the AI use case capital of the world," he said, as the country deploys AI across sectors such as education, healthcare and agriculture.
Nilekani also called for portable social security benefits and digital credentials so workers can carry pensions, insurance, healthcare benefits and professional records across employers as job mobility and gig work continue to rise.
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