Job Crisis in Bengaluru: The Impact of AI Disruption

Bengaluru, India’s IT hub, has long been a thriving destination for tech professionals. Thousands of workers reside in budget accommodations like paying guest (PG) facilities or low-cost rentals. 

However, a looming crisis is set to disrupt the city’s economy as mass layoffs in the IT sector and the rapid adoption of artificial intelligence (AI) and automation reshape the job market. Beyond tech employees, the impact will ripple through real estate, investments, and local businesses.

In the coming months, Bengaluru is expected to witness large-scale layoffs, particularly among entry-level IT workers. As companies cut costs and integrate AI-driven solutions for coding and debugging, many low-tier software roles are becoming redundant, leaving thousands unemployed.

One immediate consequence is the decline in demand for PG accommodations and budget rentals. Landlords and PG operators, who once relied on a stable IT workforce, now face financial uncertainty. Many may struggle to find tenants, leading to vacant properties and depreciating investments.

Investors, particularly around the Outer Ring Road (ORR) tech hubs, are at risk. Properties once considered prime real estate for IT professionals may lose value as job losses mount, reducing rental demand and returns.

The full extent of AI’s disruption is yet to be realized. Routine IT tasks such as coding, debugging, and testing are increasingly handled by AI, shrinking job opportunities for fresh graduates and junior professionals.

Beyond IT, automation is transforming finance, operations, and accounting. AI-powered systems are replacing human roles in financial analysis, auditing, and reporting, leading to job redundancies in these sectors.

As Bengaluru faces this shift, the coming months will be crucial in determining how the city adapts to an economy where AI and automation redefine traditional employment models.