Artificial intelligence is no longer a back-office tool, it seems to be rapidly becoming a co-worker. By 2027, nearly all HR leaders expect the nature of work to be defined by humans working alongside AI, rather than using it sporadically, according to a new report by Nasscom and Indeed.

The annual Future of Work 2025 report finds that 97% of HR leaders anticipate this shift, signaling a move away from AI as a support system to one that is embedded in everyday workflows and decision-making. Already, between 20% and 40% of work in technology organisations is being handled by AI across functions, with software development seeing some of the highest penetration.

“AI is no longer a future consideration for the technology industry and is already shaping how work gets done,” said Ketaki Karnik, head of research at Nasscom. “The real opportunity now lies in preparing people to work effectively alongside AI,” she added, pointing to the growing importance of skilling and capability-building as automation deepens.

The report notes that 45% of respondents said more than 40% of software development is already being handled by AI, followed by intelligent automation and business process management. However, this automation comes with limitations. Over half of those surveyed flagged concerns around incomplete or low-quality outputs, underscoring the continued need for human oversight.

“What’s changing isn’t the number of jobs, it’s what those jobs expect from people,” said Sashi Kumar, managing director, Indeed India. “We’re seeing roles evolve internally long before hiring signals catch up,” he said, adding that enterprises and jobseekers alike need to adapt to a “human-plus-AI ecosystem”.

New trends

One of the clearest shifts is in hiring. The report finds that 85% of hiring managers are seeing an increase in skills-based hiring, while 98% emphasised the need for hybrid and multidisciplinary skill sets. For entry-level roles, companies are prioritising job-ready candidates, increasingly using live projects, hackathons and portfolios instead of traditional credential checks. For senior hires, decision-making under ambiguity and end-to-end ownership are becoming more important markers.

Another emerging trend is the rapid adoption of AI agents. More than 95% of respondents said they are either using or planning to use AI agents, with over 65% believing these tools can outperform humans in data-heavy tasks. While this could improve efficiency, the report warns that the pressure on jobseekers may be uneven, making adaptability and continuous learning critical.

Employers, meanwhile, face significant barriers. Security and privacy risks topped the list at 77%, followed by legacy system integration issues, ethical concerns and resistance to change. Around 40% of HR leaders also flagged workforce readiness as a major concern, despite growing investment in reskilling initiatives.

Rather than predicting mass job losses, the report highlights a more immediate challenge which is that roles are evolving faster than organisations can formally define or communicate them. This misalignment, it argues, could create confusion in the job market unless hiring frameworks and role definitions catch up with how work is actually changing.