Human–AI collaboration will redefine the nature of work by 2027, with artificial intelligence becoming a core part of everyday roles rather than a supporting tool, according to a new report by Nasscom and Indeed.
The Future of Work Report 2025, titled “Work Reimagined: The Rise of Human–AI Collaboration”, finds that 97% of HR leaders expect work to be driven by humans working alongside AI within the next two years. The report examines how organizations are embedding AI into daily workflows and how this shift is transforming hiring, skills, and job design.
AI is already reshaping jobs across technology organizations. Between 20% and 40% of work is currently being handled by AI across functions. Nearly 45% of respondents said more than 40% of software development work is now supported by AI, followed by intelligent automation (39%) and BPM (37%). However, more than half of respondents reported issues such as incomplete or low-quality AI outputs, reinforcing the continued need for human oversight.
The report identifies Human + AI collaboration as the next phase of enterprise transformation, where success depends on how effectively AI augments human judgment and creativity. High-value activities such as scope definition, system architecture, and data model design are emerging as key areas of collaboration, while routine tasks like boilerplate coding and unit test creation are expected to be increasingly automated over the next two to three years.
“AI is no longer a future consideration — it is already shaping how work gets done,” said Ketaki Karnik, Head of Research at Nasscom. “The real opportunity lies in preparing people to work effectively alongside AI. Skilling and capability building will be central to helping talent move up the value chain.”
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Sashi Kumar, Managing Director of Indeed India, said job expectations are changing faster than job titles. “What’s changing isn’t the number of jobs, but what those jobs expect from people. Roles are evolving internally long before hiring signals catch up. The goal is to create a human-plus-AI ecosystem that is productive, inclusive and future-ready,” he said.
Shift toward skills-based hiring
As AI transforms tasks within roles, hiring is moving away from credential-led selection to skills- and outcome-based evaluation. About 85% of hiring managers reported an increase in skills-based hiring, while 98% stressed the need for hybrid and multidisciplinary skill sets.
For entry-level roles, employers are prioritizing job-ready candidates assessed through live projects, hackathons, case studies and portfolios. For mid- and senior-level roles, hiring decisions are increasingly based on ownership, decision-making under ambiguity, and the measurable impact of past projects.
Rapid rise of AI agents
The report highlights strong momentum behind Agentic AI, with over 95% of respondents either using or planning to use AI agents. More than 65% believe AI agents outperform humans in handling large data volumes and maintaining consistent output quality.
For jobseekers, this shift signals uneven pressure across roles. The report advises individuals to focus on continuous learning, AI tool proficiency, multidisciplinary skills, and outcome-driven portfolios that demonstrate real-world impact.
Barriers and readiness gaps
Despite growing adoption, organizations face challenges in AI implementation. Key concerns include security and privacy risks (77%), legacy system integration (61%), ethical and governance issues (59%), and resistance to change (58%). Around 40% of HR leaders also cited workforce readiness as a major concern due to skill gaps in the AI era.
From intent to action
Organizations are responding with increased focus on upskilling and system modernization. Nearly 79% prioritize internal reskilling as their main AI adoption strategy. Job redesign is gaining importance, with humans shifting toward judgment, creativity and accountability, while AI handles scale and speed. About 83% of HR leaders said they are actively redesigning roles and introducing AI-specific positions.
Organizational structures are also evolving, with more than 55% of companies reporting changes driven by AI adoption. Hybrid work has emerged as the dominant model, followed by 80% of organizations, with most employees working from office at least three days a week.
The report concludes that while fears of mass job displacement remain overstated, the real challenge lies in the speed of role evolution. Job roles are changing faster than they are being formally defined or communicated, creating a gap between organizational reality and hiring frameworks.
It calls for clearer role definitions, more transparent hiring signals, and closer alignment between how work is transforming internally and how opportunities are presented in the job market — ensuring that the future of work is not only AI-enabled, but also human-centered.
