A significant disconnect exists between Indian companies' recognition of AI's impact on office requirements and actual implementation efforts. According to JLL's 2026 Future of Work Survey, 77% of Indian firms acknowledge that AI will change their office space needs, while only 19% have begun making these changes. This wide gap between intent and action represents a critical challenge in India's workplace transformation, as companies grapple with the practical implications of artificial intelligence adoption. The survey of over 2,200 CEOs, CFOs and real estate heads across 21 countries found that Indian companies are ahead of the rest of the world in putting AI to use in how they plan and run their offices.
India has emerged as a global leader in AI readiness across multiple metrics, demonstrating advanced preparation for workplace transformation. As reported by JLL, Indian firms lead the world on all eight AI readiness measures tracked by the survey, with Indian companies ahead of global averages in tracking AI trends, studying its impact on real estate teams, staff training, and scouting new locations. Nearly 56% of Indian firms track AI trends against 46% globally, while 45% of Indian companies run staff training and change programmes against the global average of 36%. Nearly one in five Indian companies (19%) reached the most advanced stage of using AI in real estate operations, compared to 15% globally, while 47% were actively rolling out AI versus 42% worldwide.
For the first time in JLL's 15-year survey history, capability constraints have overtaken cost constraints as the primary barrier to AI implementation. According to the report, 46% of companies cited AI, technology and data skills shortage as their primary limitation, compared to 35% citing budget constraints. As Ajit Kumar, Managing Director, Work Dynamics Accounts, West Asia, JLL, noted, "For the first time in 15 years of tracking this data, 46% of Indian companies cite skills shortage as their primary barrier versus only 35% citing budget." This gap was more pronounced in India than the Asia Pacific average of 42% and the global average of 36%, indicating a unique challenge in India's talent market for AI-related positions. Kumar emphasized that "The companies that reframe this as a skills development challenge rather than a budget constraint-and invest in the 50 per cent who are prioritizing AI support and infrastructure-will define India's workplace transformation over the next decade."
Despite the disruption AI is expected to bring, most Indian business leaders maintain a constructive view of its impact on employment. As reported by JLL, 58% of senior leaders anticipate workforce growth over the next three to five years, while 62% said AI would make human roles more valuable rather than replace them. Additionally, 65% said staff would increasingly be judged on the quality of their work rather than hours logged, suggesting a shift toward performance-based evaluation systems. Kumar emphasized that "AI will add jobs, not cut them, according to India's business leaders, but a shortage of skills, not money, is now the biggest hurdle to change."
Office expense drivers are experiencing a fundamental shift as traditional costs take a backseat to technology and energy requirements. According to JLL's findings, energy bills and AI automation costs, both cited by 49% of companies, are expected to be the biggest drivers of rising office expenses over the next three to five years. Notably, rent ranked only sixth on that list at 29%, representing a marked shift from how office costs have traditionally been structured and highlighting the growing importance of technology infrastructure in workplace planning.
