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Business
Sridhar Vembu Warns IT Firms Stop Hiring; AI Costs Spiral Out of Control
✍️ indiatoday.in
🗓 03 Aug 2026, 09:34 AM
👁 1
Zoho founder Sridhar Vembu has warned that IT firms across India have largely halted new job creation, while the cost of artificial intelligence tools has surged beyond control.
Sridhar Vembu, the founder of the software company Zoho, recently issued a stark warning about the current state of the Indian IT sector. According to Vembu, many IT firms have stopped creating new positions, leading to a slowdown in employment growth.
The tech leader also highlighted the escalating costs associated with artificial intelligence solutions. He noted that the price of AI tools has risen sharply, making it difficult for companies to adopt these technologies without significant investment.
Vembu’s remarks come at a time when the IT industry is under pressure to balance innovation with affordability. While the sector has traditionally been a major job creator, the new cost dynamics may alter hiring patterns in the coming months.
Industry analysts suggest that the slowdown in job creation could affect the broader economy, especially in cities with a high concentration of tech firms. The warning from Vembu underscores the need for policy interventions to manage AI spending and support employment growth.
The tech leader also highlighted the escalating costs associated with artificial intelligence solutions. He noted that the price of AI tools has risen sharply, making it difficult for companies to adopt these technologies without significant investment.
Vembu’s remarks come at a time when the IT industry is under pressure to balance innovation with affordability. While the sector has traditionally been a major job creator, the new cost dynamics may alter hiring patterns in the coming months.
Industry analysts suggest that the slowdown in job creation could affect the broader economy, especially in cities with a high concentration of tech firms. The warning from Vembu underscores the need for policy interventions to manage AI spending and support employment growth.