As AI transforms the employment landscape, Nandan Nilekani, cofounder of Infosys, emphasized that startups and small businesses will be the primary drivers of job creation in India’s AI-driven economy, supported by advancements in tokenisation and digital financial infrastructure.
- Startups and SMEs expected to create most new jobs amid AI automation
- Tokenisation seen as vital enabler for small business asset financing
- AI agents could boost digital asset demand and liquidity
What happened
At the 2026 Global Fintech Fest, Nandan Nilekani presented his vision of how AI’s impact on employment will differ across business sizes in India. He explained that while large companies might reduce workforces through automation enabled by AI’s compatibility with structured roles, smaller businesses tend to involve more varied roles that resist automation. This means startups and small enterprises will become key job creators in the AI era.
Nilekani highlighted the remarkable growth of India’s startup ecosystem, expanding from around 10,000 startups in 2015 to 1.5 lakh in 2025, with projections reaching 10 lakh by 2035. He also unveiled emerging use cases of tokenisation—making assets digitally portable and verifiable—which can extend critical financial services like lending to smaller businesses at scale.
Why it matters
The transition to an AI-driven economy presents employment challenges due to automation risk in large organizations. Nilekani’s insights underscore the importance of fostering a vibrant small business sector to ensure economic resilience and continued job creation. By leveraging digital tools, these smaller entities can compete more effectively with larger players in capital access and market reach.
Tokenisation, when combined with India’s existing digital infrastructure, promises a transformative shift in how assets and financial rights are managed and utilized. These advances could democratize access to financing, insurance, and marketplaces, thereby empowering startups and SMEs to scale and sustain employment opportunities.
What to watch next
Monitor the development and rollout of tokenised financial products like certificates of deposit and corporate bonds by Indian regulators RBI and SEBI. The success of pilot projects using tokenisation—for assets such as cattle, warehouse receipts, and loan documents—will be critical indicators of digital asset adoption and SME inclusion in formal financial networks.
Keep an eye on the use of AI agents to facilitate dynamic transactions involving tokenised assets. These agents could stimulate demand by automating identification of financing sources, effectively bridging supply and demand in digital marketplaces. This innovation may unlock new levels of liquidity and opportunity for India’s small business ecosystem as it adapts to the AI-era economy.