Mumbai leads, but Tier 2 cities catch up in AI hiring: Indeed report
Indeed's latest AI Jobs Tracker shows AI hiring in India is spreading beyond metro cities. The shift is widening access to roles as companies tap talent in smaller centres.
India's artificial intelligence (AI) job market is gradually expanding beyond major metro cities, with Tier 2 and Tier 3 cities emerging as new hiring destinations, according to Indeed's latest AI Jobs Tracker.
The report shows that metro cities continue to dominate AI recruitment, with 48% of employers reporting the strongest rise in AI job postings from Tier 1 cities. However, around one in four employers now see Tier 2 and Tier 3 cities as emerging AI hiring hubs, indicating that opportunities are becoming more widespread.
"Tier 2 and Tier 3 cities are becoming more relevant because they offer access to skilled talent that is both available and more stable, especially as professionals increasingly prefer to build careers closer to home," said Sashi Kumar, Managing Director, Indeed.
He added that the shift gives employers greater flexibility in building teams, while job seekers can now access AI opportunities based more on skills than location.
Among cities, Mumbai leads AI hiring, with 56% of employers reporting an increase in AI job postings. Delhi NCR follows with 50%, driven by a mix of enterprises, startups and consulting firms.
Chennai ranked third, with 47% of employers reporting increased AI hiring, particularly in manufacturing and enterprise technology. Bengaluru, despite remaining India's leading AI and technology hub, recorded 44% growth, with demand continuing for high-value engineering, product and strategy roles.
Among Tier 2 cities, Ahmedabad and Chandigarh emerged as fast-growing AI hiring centres, with 43% of employers in each city reporting an increase in AI job postings.
The report said the expansion of AI hiring is linked to the way companies are adopting the technology. Strategic functions such as AI governance, research and development, and enterprise transformation continue to be concentrated in metro cities.
However, companies are becoming more flexible about hiring locations for roles related to data operations, analytics, infrastructure and AI implementation. Sectors such as IT-ITeS, logistics and manufacturing are witnessing stronger hiring in Tier 2 cities, while the media and entertainment industry is seeing nearly equal AI hiring across metro and smaller cities.
The findings are based on a survey conducted by Valuvox on behalf of Indeed among 1,267 employers and 2,541 employees during January and February 2026.
India's artificial intelligence (AI) job market is gradually expanding beyond major metro cities, with Tier 2 and Tier 3 cities emerging as new hiring destinations, according to Indeed's latest AI Jobs Tracker.
The report shows that metro cities continue to dominate AI recruitment, with 48% of employers reporting the strongest rise in AI job postings from Tier 1 cities. However, around one in four employers now see Tier 2 and Tier 3 cities as emerging AI hiring hubs, indicating that opportunities are becoming more widespread.
"Tier 2 and Tier 3 cities are becoming more relevant because they offer access to skilled talent that is both available and more stable, especially as professionals increasingly prefer to build careers closer to home," said Sashi Kumar, Managing Director, Indeed.
He added that the shift gives employers greater flexibility in building teams, while job seekers can now access AI opportunities based more on skills than location.
Among cities, Mumbai leads AI hiring, with 56% of employers reporting an increase in AI job postings. Delhi NCR follows with 50%, driven by a mix of enterprises, startups and consulting firms.
Chennai ranked third, with 47% of employers reporting increased AI hiring, particularly in manufacturing and enterprise technology. Bengaluru, despite remaining India's leading AI and technology hub, recorded 44% growth, with demand continuing for high-value engineering, product and strategy roles.
Among Tier 2 cities, Ahmedabad and Chandigarh emerged as fast-growing AI hiring centres, with 43% of employers in each city reporting an increase in AI job postings.
The report said the expansion of AI hiring is linked to the way companies are adopting the technology. Strategic functions such as AI governance, research and development, and enterprise transformation continue to be concentrated in metro cities.
However, companies are becoming more flexible about hiring locations for roles related to data operations, analytics, infrastructure and AI implementation. Sectors such as IT-ITeS, logistics and manufacturing are witnessing stronger hiring in Tier 2 cities, while the media and entertainment industry is seeing nearly equal AI hiring across metro and smaller cities.
The findings are based on a survey conducted by Valuvox on behalf of Indeed among 1,267 employers and 2,541 employees during January and February 2026.
