India, Sept. 10 -- As AI reshapes the nature of work and raises concerns about job displacement, startups and small businesses will become the key engines of employment creation, Infosys cofounder Nandan Nilekani said at the Global Fintech Fest (GFF) 2026 today.

Nilekani said large companies, with their structured roles and processes, are better positioned to deploy AI for automation and reduce their workforce. Smaller businesses, on the other hand, have more dynamic roles that are harder to automate.

"If you want to AI-proof an economy, you actually should create a situation where job creation is done by millions of small companies," Nilekani said.

He pointed to the rapid expansion of India's startup ecosystem, saying that the country...