As Indian businesses race to integrate AI with their services, new research suggests that the shortage of skilled professionals in the field could hinder the technology’s growth and adoption in India. A new report released by global consultancy firm Bain & Company on Monday, March 10, found that over 2.3 million jobs could open up in India’s AI sector by 2027. The AI talent pool within the country is expected to grow to around 1.2 million qualified candidates, as per the report. Despite this, the demand for AI talent is expected to exceed supply by nearly one million workers, creating a significant skills gap, according to the report. A survey of executives also revealed that 44 per cent of respondents identified a lack of in-house AI expertise as a key barrier to implementing generative AI, followed by quality and accuracy concerns (44 per cent). Data security and privacy concerns (38 per cent), unorganised company data (32 per cent), and unproven ROI on generative AI (29 per cent) were also cited as reasons for businesses not moving faster to adopt AI. Globally, the study found that AI-related job postings have surged by 21 per cent every year since 2019, with compensation growing 11 per cent annually over the same period. “The challenge—and opportunity— lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets,” Saikat Banerjee, partner and leader in Bain & Company’s AI, Insights, and Solutions practice in India, said in a statement. “The AI talent shortage is a significant challenge, but not invincible. Addressing it requires a fundamental shift in how businesses attract, develop, and retain AI talent. Companies need to move beyond traditional hiring approaches, prioritise continuous upskilling, and foster an innovation-driven ecosystem,” he added. Meanwhile, Bain & Company stated that one in two AI jobs in the US would be left unfilled by 2027. “Germany could see the biggest AI talent gap, with around 70 per cent of AI jobs unfilled by 2027,” the report stated. In the next three years, the UK and Australia may see AI talent shortfalls of 150,000 and 60,000 AI professionals, respectively.
