Despite the remarkable AI transformation happening in India, employers continue to struggle to find the AI talent they need.

Hiring AI-skilled talent is a priority for more than nine in ten (96%) employers in India, of which 79% can’t find the AI talent they need. According to the findings of the study, titled “Accelerating AI Skills: Preparing the Asia-Pacific Workforce for Jobs of the Future”, conducted by Amazon Web Service.

The findings of the research reveal a looming AI skills gap that must be bridged to ensure India is well-positioned to unlock the full productivity benefits of AI. The research also uncovers a training awareness gap, whereby 91% of employers indicated that they don’t know how to run an AI workforce training program. Meanwhile, 86% of workers said they aren’t sure about relevant career paths where AI skills are useful.

Almost all employers (99%) envision their companies becoming AI-driven organisations by 2028. While most employers (97%) believe their finance department will be the biggest beneficiary, they also foresee IT (96%), research and development (96%), sales and marketing (96%), business operations (95%), human resources (94%), and legal (92%) departments driving significant value from AI too.

Salary hike for the skilled workforce

The report also highlights that when artificial intelligence (AI) is fully harnessed, workers in India with AI skills and expertise could see salary hikes of over 54%, with workers in IT (65%), and research and development (62%) enjoying the highest pay increases.

On top of significant salary increases, 97% of workers in India expect their AI skills to have a positive impact on their careers, including increased job efficiency and career advancement. 

The workforce is desperate to upskill

It further highlights that 95% of workers in India indicated a keen interest in developing AI skills to accelerate their careers, and this interest transcends generations. 95% of Gen Z, 96% of Millennials, and 93% of Gen X workers want to acquire AI skills, while 90% of baby boomers — a demographic usually contemplating retirement — say they would enrol in an AI upskilling course if it was offered.

The research also found that the productivity payoff from an AI-skilled workforce could be immense for India. Surveyed employers expect their organisation’s productivity to increase by 68% as AI technology automates repetitive tasks (71%), encourages learning of new skills (68%), and improves workflow and outcomes (64%). Workers believe AI could raise their efficiency by as much as 66%.

Generative AI—a type of AI is already transforming workplaces in India where 98% of surveyed employers and workers expect to use generative AI tools on the job within the next five years, with 73% of employers highlighting ‘increasing innovation and creativity’ as the top benefit, followed by improving outcomes (69%) and automating repetitive tasks (68%).

“Generative AI offers an unprecedented opportunity to transform businesses across India, and this research shows that AI skills are imperative for the future workforce. From financial services to construction and retail, industries are embracing AI at a rapid pace, which is why an AI-skilled workforce is essential to unleashing a culture of innovation and driving productivity in India, aligning with the government of India’s IndiaAI Mission,” said Amit Mehta, Head of AWS Training and Certification, AWS India.

Bridging India’s AI skills gap is mission-critical

The research reveals a looming AI skills gap that must be bridged to ensure India is well-positioned to unlock the full productivity benefits of AI. The research also uncovers a training awareness gap, whereby 91% of employers indicated that they don’t know how to run an AI workforce training program. Meanwhile, 86% of workers said they aren’t sure about relevant career paths where AI skills are useful.

The research highlights the need for greater collaboration between governments, industries, and educators to help employers across India implement AI training programs and guide workers in matching their AI skillsets to the right roles to harness their newly acquired AI capabilities.

“In today's rapidly evolving digital landscape, upskilling workers in AI, founded on ethical frameworks and principles, is not just a strategic choice, but a critical imperative for governments and organisations across Asia-Pacific,” said Dr. Rupa Chanda, Director of Trade, Investment and Innovation Division, United Nations Economic and Social Commission for Asia and the Pacific (UNESCAP). “This report shows that the future of work demands a workforce equipped with AI proficiency to navigate emerging challenges and harness opportunities for sustainable and equitable economic growth and development as well as inclusive innovation."