Human–AI collaboration to shape work by 2027, says Nasscom–Indeed report

Human–AI collaboration is set to become the dominant mode of work in the technology sector, with nearly all HR leaders expecting humans to work alongside artificial intelligence rather than interact with it sporadically by 2027, according to a new report by Nasscom and Indeed.

The report, Work Reimagined: The Rise of Human–AI Collaboration, found that 97% of HR leaders believe AI will be embedded into everyday workflows over the next two years. Already, between 20% and 40% of work across technology organisations is being carried out using AI across functions.

Software development has seen the highest level of AI adoption, with 45% of respondents saying more than 40% of development work is currently done using AI. This was followed by intelligent automation and business process management, at 39% and 37%, respectively. However, the report noted that AI remains heavily dependent on human oversight, with more than half of respondents citing incomplete or low-quality outputs as a key concern.

The study described the “Human + AI” model as the next phase of workplace transformation, where success will depend on how effectively AI augments human capabilities rather than replaces them. Higher-order activities such as scope definition, system architecture and data model design are emerging as areas where human–AI collaboration is most effective, while routine tasks like boilerplate code generation and unit test creation are expected to be increasingly automated over the next two to three years.

“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. As adoption deepens, skilling and capability building will be central to ensuring talent moves up the value chain.”

The report also pointed to a shift in hiring practices. Around 85% of hiring managers reported an increase in skills-based hiring, while 98% highlighted the growing importance of hybrid and multidisciplinary skill sets. Entry-level recruitment is increasingly focused on job-ready candidates, with assessments moving towards live projects, hackathons, portfolios and outcome-based evaluations. For mid- and senior-level roles, employers are prioritising end-to-end ownership, decision-making under ambiguity and demonstrated impact across past projects.

Agentic AI is gaining rapid traction, with more than 95% of respondents saying they are already using or planning to deploy AI agents. Over 65% of respondents believe AI agents outperform humans in processing large volumes of data and delivering consistent output, signalling uneven pressure across job roles and skill levels.

Despite growing adoption, organisations face several barriers to scaling AI. Security and privacy risks were cited by 77% of respondents, followed by challenges integrating AI with legacy systems (61%), ethical and governance concerns (59%), and resistance to change (58%). Workforce readiness remains a parallel concern, with around 40% of HR leaders flagging gaps in AI-related skills.

To address these challenges, nearly seven in ten HR leaders said they are prioritising upskilling, while more than half are focusing on modernising systems. About 79% identified internal reskilling as the primary strategy for AI adoption. Job redesign is also gaining importance, with humans increasingly focused on judgment, creativity and accountability, while AI is deployed for scale and speed.

Organisational structures and work models are evolving in tandem. More than 55% of organisations reported changes in organisational design driven by AI-led productivity gains, although 32% said it was too early to assess the full impact. Hybrid work has emerged as the dominant model, with 80% of organisations following a hybrid approach and most employees working from office three or more days a week. Over the past year, 88% of HR leaders said they have pushed for greater in-office presence to support collaboration and learning.