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India Inc Races to Bridge AI Skill Gap as Demand Outpaces Supply

2 min read

AI Talent Shortage in India

India is experiencing a significant shortage of artificial intelligence (AI) experts, fulfilling only half of the current demand. This gap is projected to remain, with a 53% shortage expected by the end of 2026.

BCG's Findings

The ‘GenAI Adoption Conundrum’ report by BCG highlights:

  • Organizations are investing up to 1.5% of their revenues in workforce learning and development, focusing heavily on upskilling in new technologies, including AI.
  • Key roadblocks to AI readiness include: 
    1. Lack of leadership awareness.
    2. Organizational changes related to structure and culture.
    3. Delivering measurable results.

Skill Gaps and Challenges

Despite having the largest STEM talent pool, India struggles with finding AI specialists. The primary skill gap exists in:

  • Deep specialists in AI-related domains.
  • A broader workforce capable of effectively using AI.

The integration of AI into systems and workflows demands more specialized skills, termed as getting the "plumbing" right.

Strategies for Bridging the Gap

To address the workforce challenge, experts suggest retraining existing employees rather than solely hiring new talent. Companies need about 1-2% of their workforce to be deeply specialized in AI to build solutions for others.

Global Context and India's Position

Globally, the US, Singapore, Mainland China, the UK, and Canada lead in AI. India is considered a rising contender, attracting global interest due to its talent pool availability.

  • Tags :
  • AI Talent Shortage
  • GenAI Adoption Conundrum
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