Zoho co-founder and Chief Scientist Sridhar Vembu has raised a warning about what AI-heavy spending could mean for young job seekers, especially Gen Z entering India’s IT workforce. His argument is that the immediate challenge may not be learning AI tools, but finding enough openings in a market where companies are reworking their priorities.
According to Vembu, more IT budgets are being directed toward AI infrastructure, computing capacity and data centres. As that investment rises, businesses may slow down new hiring, particularly for entry-level roles that traditionally absorb fresh graduates and early-career workers.
He suggests this shift could create a wider purchasing power problem. Even if AI helps make software and services cheaper, that benefit may be limited if fewer young workers are earning enough income to participate fully in the economy. In that scenario, lower prices would not fully offset weaker household spending power.
The warning adds to a broader debate around AI adoption in the tech industry. While companies are chasing efficiency and automation, Vembu’s comments point to the risk that aggressive AI investment could reshape hiring patterns faster than the job market can adapt, leaving a large section of the young workforce under pressure.
