India’s artificial intelligence (AI) sector is on track to surpass 2.3 million job openings by 2027, highlighting a growing demand for AI talent, according to a recent report by a consultancy firm.
The report revealed that India’s AI talent pool is expected to expand to approximately 1.2 million in the coming years, offering an opportunity to reskill over 1 million workers. The study underscored the urgent need for upskilling to bridge the talent gap in the country.
AI talent shortage and the need for reskilling
Saikat Banerjee, Partner at Bain & Company and leader in its AI, Insights, and Solutions practice in India, emphasized that India has a unique opportunity to establish itself as a global AI talent hub. However, by 2027, AI job openings are projected to be nearly twice the available talent.
“The challenge—and opportunity—lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets,” Banerjee said. He noted that although the AI talent shortage is a major concern, it can be addressed through a shift in hiring strategies.
“Addressing it requires a fundamental shift in how businesses attract, develop, and retain AI talent. Companies need to move beyond traditional hiring approaches, prioritize continuous upskilling, and foster an innovation-driven ecosystem,” he added.
Global AI talent gap and rising demand
The report highlighted that AI-related job postings have surged by 21% annually since 2019, while salaries in the sector have risen by 11% per year. Despite this, the supply of qualified AI professionals has failed to keep pace, creating a widening talent gap that hinders AI adoption worldwide.
Nearly 44% of global executives cited the lack of in-house AI expertise as a major obstacle in implementing AI technologies. The talent shortage is expected to persist until at least 2027, impacting AI growth across various economies.
United States: One in two AI jobs could remain unfilled by 2027, with demand expected to reach over 1.3 million while supply lags at 645,000, necessitating the reskilling of around 700,000 workers.
Germany: The AI talent gap could be the most severe, with 70% of AI jobs projected to remain vacant. The country will require between 190,000 and 219,000 AI professionals by 2027, but only around 62,000 will be available.
United Kingdom: AI job demand is expected to exceed supply by over 50%, with just 105,000 workers available for up to 255,000 positions.
Australia: The country could experience a shortfall of over 60,000 AI professionals, with only 84,000 specialists available for up to 146,000 roles.
India’s AI potential and way forward
India’s AI sector has the potential to be a leading global player in AI talent development. However, to meet the growing demand, businesses, educational institutions, and policymakers must collaborate to enhance AI training programs and implement large-scale reskilling initiatives.