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India’s Gen Z workforce is increasingly moving away from traditional career paths in favour of flexible work, AI-driven skills and multiple income streams, according to new research from International Workplace Group (IWG).

The study suggests that younger professionals are adopting “portfolio careers”, combining full-time employment with freelance work, side hustles and entrepreneurial ventures to improve financial security and remain competitive in an AI-driven economy.

The findings reflect a broader shift in workplace expectations as AI adoption, rising living costs and flexible working models reshape how the country’s youngest professionals plan their careers.

AI Driving Career Decisions

According to the research, 55% of Gen Z respondents believe AI will reshape their careersencouraging them to develop new skills and diversify their income sources.

The report argues that as AI automates routine tasks, professionals will increasingly rely on creativity, adaptability, collaboration and leadership to remain relevant. It also notes that India’s growing gig economy is accelerating the adoption of portfolio careers.

Side Hustles Become Mainstream

Financial security continues to influence career decisions among young professionals.

The study found that 33% of Gen Z workers already have or are considering a side hustlewhile 43% have changed jobs two or three times during the past three years. Higher salaries remain the primary motivation for job changes.

The report also highlights that many young professionals are strategically moving across roles and industries to increase earning potential rather than following conventional career progression.

Long Commutes Discourage Entrepreneurship

The research found that lengthy daily commutes remain a significant barrier to flexible careers.

Around 65% of Gen Z respondents said they would be less likely to pursue entrepreneurship or additional income streams if they had to commute long distances every day. Hybrid working and access to professional workspaces closer to home allow many young professionals to dedicate more time to learning, collaboration and side projects.

The report notes that traffic congestion in cities such as Bengaluru, Delhi and Mumbai makes flexible working increasingly attractive for younger employees.

IWG Sees Flexible Work Supporting Career Growth

“Gen Z in India is entering the workforce at a time of significant change,” said Harsh LambahCountry Manager, India and Vice President, Sales, South Asia at IWG.

“AI is transforming roles across industries, and young professionals are responding by building new skills, creating multiple income streams and developing portfolio careers. In cities where daily commutes can consume several hours, working closer to home makes it easier to pursue a side hustle or launch a second venture. Professional workspaces near residential areas help people regain valuable time to upskill, collaborate and build the careers they want,” he said.

Flexible Work Continues to Gain Momentum

The findings underline the growing role of flexible workspaces as organisations adapt to changing workforce expectations.

Employers are increasingly balancing hybrid work with office collaboration, while younger professionals seek greater autonomy, continuous learning and diversified income opportunities.

As AI continues to reshape the labour market, portfolio careers and flexible working arrangements are expected to become more common across India’s knowledge economy.