Indeed: India’s tier 2 cities drive AI hiring growth
Indeed's latest AI Jobs Tracker shows AI hiring is growing beyond India's metros, with Tier 2 and Tier 3 cities emerging as key talent hubs.
Artificial intelligence jobs are no longer limited to Bengaluru, Mumbai or Delhi. According to Indeed's latest AI Jobs Tracker, hiring for AI roles is steadily expanding into Tier 2 and Tier 3 cities across India.
While major metropolitan areas continue to lead recruitment, employers are increasingly looking beyond traditional technology hubs to find skilled professionals. This means skills now matter more than postcodes. Now, let's take a closer look at the report!
Where AI hiring is growing
The report shows that Tier 1 cities remain the largest contributors to AI recruitment, with 48% of employers identifying them as the main source of hiring growth. However, nearly one in four employers now consider Tier 2 and Tier 3 cities to be emerging AI talent hubs.
Among individual cities, Mumbai recorded the strongest hiring momentum, with 56% of employers reporting increased AI recruitment. Delhi NCR followed at 50%, Chennai at 47% and Bengaluru at 44%.
Outside the metros, Ahmedabad and Chandigarh emerged as leading Tier 2 destinations, with 43% of employers in both cities reporting higher demand for AI professionals.
Why smaller cities are gaining ground
The expansion is being driven by changing workforce preferences and evolving business needs. Many professionals now prefer to build careers closer to their hometowns rather than relocate to major metropolitan areas.
At the same time, companies are becoming more comfortable managing distributed teams supported by digital collaboration tools. Indeed says this allows organisations to access skilled talent while improving employee retention and reducing hiring costs.
The report also highlights that different AI roles are being distributed differently across locations. High-level responsibilities such as AI research, governance and enterprise transformation continue to be concentrated in metro cities.
Meanwhile, positions involving data operations, analytics, AI implementation and infrastructure are increasingly being filled in Tier 2 locations, particularly across industries such as IT and ITeS, logistics and manufacturing.
What this means for job seekers
The growing demand outside metropolitan areas creates new opportunities for professionals who want to work in AI without relocating. Employers are placing greater emphasis on practical skills than geographical location.
Candidates with strong portfolios, hands-on AI projects, recognised certifications and real-world experience are likely to remain competitive regardless of where they live. For organisations, the report reinforces the importance of developing flexible hiring strategies and investing in training programmes to support AI talent across multiple locations.
Note: The findings are based on a Valuvox survey conducted for Indeed, covering 1,267 employers and 2,541 employees during January and February 2026.
The bigger picture
This report signals an important shift in India's AI employment landscape. As businesses continue adopting artificial intelligence, opportunities are spreading beyond traditional technology hubs, making AI careers more accessible to skilled professionals across the country. This growing decentralisation could help create a more balanced and inclusive AI workforce in the years ahead.