India’s artificial intelligence (AI) sector is on track to create over 2.3 million job openings by 2027, highlighting the country’s growing prominence in the global AI talent landscape, according to a Bain & Company report released on Monday.
The Need for Reskilling and Upskilling
The report underscores the critical need for reskilling and upskilling to bridge the widening talent gap in India. The country’s AI talent pool is projected to grow to 1.2 million professionals, presenting an opportunity to reskill more than 1 million workers to meet industry demands.
“India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, job openings in AI will be 1.5 to 2 times the available talent. The challenge and opportunity lie in reskilling and upskilling a significant portion of the existing workforce in emerging technologies,” said Saikat Banerjee, Partner at Bain & Company.
Banerjee emphasized that while AI talent shortages pose a significant challenge, they are not insurmountable. Businesses must adopt a fundamental shift in how they attract, develop, and retain AI professionals.
“Companies need to move beyond traditional hiring approaches, prioritize continuous upskilling, and foster an innovation-driven ecosystem,” he added.
Global AI Talent Gap and Its Implications
AI-related job postings worldwide have increased by 21% annually since 2019, with compensation growing by 11% per year. However, the number of qualified professionals has not kept pace, leading to a widening talent gap that is slowing AI adoption across industries.
- 44% of executives cite the lack of in-house AI expertise as a major hurdle in implementing generative AI.
- This shortage is expected to persist through at least 2027, with its impact varying across global markets.
AI Talent Shortage in Leading Economies
The talent gap is not unique to India. Several developed nations are also facing severe AI workforce shortages:
- United States: One in two AI jobs could go unfilled by 2027. The country may require up to 1.3 million AI professionals, but only 645,000 are expected to be available, necessitating the reskilling of 700,000 workers.
- Germany: The country faces the largest AI talent gap among leading economies, with 70% of AI jobs projected to remain unfilled. By 2027, Germany may need 190,000–219,000 AI specialists, but only 62,000 professionals will be available.
- United Kingdom: The UK could experience more than a 50% shortfall, with just 105,000 AI workers available to fill up to 255,000 AI jobs by 2027.
- Australia: The AI workforce shortfall could exceed 60,000 professionals, with only 84,000 AI specialists available to meet an estimated 146,000 AI job openings.
India’s Advantage in AI Talent Development
Unlike many Western economies struggling with AI talent shortages, India’s robust IT and digital workforce positions it as a leading contender in the global AI job market. The report highlights that India’s expanding AI ecosystem could drive significant economic growth, provided there is a strong emphasis on workforce training and AI education initiatives.
With the demand for AI professionals rapidly outpacing supply, India must invest in large-scale upskilling initiatives to close the talent gap. Companies need to adopt proactive hiring strategies, implement AI-focused training programs, and collaborate with educational institutions to develop a steady pipeline of AI talent.
If successful, India is well-positioned to emerge as a global AI hub, catering not only to its domestic AI sector but also filling critical skill gaps in major economies worldwide.
