AI Driven Productivity May Deliver 3-5% Growth Without Adding Staff: HCLTech CEO at Davos 2026

Artificial intelligence (AI) continues to transform industries, sparking widespread concern about potential job losses due to automation. However, C Vijayakumar, CEO and Managing Director of HCLTech, presented a more nuanced view during an exclusive discussion at Davos 2026. Contrary to the common narrative of AI-induced layoffs, Vijayakumar highlighted that AI advancements are enabling companies to achieve significant productivity gains without necessarily increasing headcount. According to him, AI-driven productivity improvements could contribute to a 3-5% growth in output without the need for large hiring sprees.

Vijayakumar emphasized that AI is not just a tool for automation but a catalyst for creating new services and revenue streams within the IT sector. This evolution is reshaping the industry’s business models, allowing firms to innovate and expand their offerings. The CEO pointed out that while AI reduces the reliance on traditional labor-intensive processes, it simultaneously opens avenues for specialized roles focused on AI development, deployment, and management. This dual effect suggests a shift in workforce composition rather than a straightforward reduction.

The conversation also touched on the broader economic implications of AI integration. By enhancing operational efficiency and enabling smarter decision-making, AI can drive sustainable growth across sectors. Vijayakumar’s insights suggest that companies leveraging AI effectively will not only improve their competitiveness but also contribute to overall economic expansion. This perspective challenges the often alarmist view of AI as a job killer, instead framing it as a growth enabler that requires strategic workforce adaptation.

Moreover, the CEO underscored the importance of upskilling and reskilling employees to align with the evolving technological landscape. As AI takes over routine tasks, human workers can focus on higher-value activities that require creativity, critical thinking, and emotional intelligence. This transition necessitates investment in training programs and a proactive approach to workforce development, ensuring that employees remain relevant and productive in an AI-enhanced environment.

In summary, Vijayakumar’s remarks at Davos 2026 highlight a balanced outlook on AI’s impact on productivity and employment. Rather than causing widespread job displacement, AI is poised to drive moderate growth and foster new business opportunities while reshaping workforce dynamics. Companies that embrace this change through innovation and employee development are likely to thrive in the emerging AI-driven economy.