The technology sector in India is projected to add up to 1.2 lakh new roles for artificial intelligence(AI) - Generative AI and Analytics - in the next two years, as AI adoption picks up across domains.
These job roles will predominantly be created in the tech services, Global Capability Centres (GCC), pure play AI and analytics, startup and tech product companies.
Hiring in the tech sector has been muted over the past year, as demand has moderated following a period of robust hiring activity. While the larger debate around AI potentially displacing jobs persists, the adoption of AI technologies is simultaneously creating new roles and opportunities.
“We estimate 120,000 to 150,000 new demands or roles for AI (Gen AI) and Analytics over the next 2 years as clients move from Proof of Concept(PoC) to large scale deployment and also as Indian IT services industry adds AI applications for clients, this would create new roles from AI researcher, application specialists, AI product managers to AI consultants,” said Gaurav Vasu, founder and CEO of market intelligence firm UnearthInsight.
India currently has around 4 lakh AI engineers, but the demand stands at 6 lacs, with industry projections to reach 1 million by 2026. This surge is driven by digital transformation across industries like IT, manufacturing, healthcare, and finance, notes TeamLease Digital.
“It is estimated that around 90,000–120,000 new AI roles will open up in India alone over the next two years, driven by the rapid adoption of AI across sectors like healthcare, e-commerce, banking, and autonomous systems,” Krishna Vij, Vice President at TeamLease Digital said.
AI roles significantly differ from traditional tech roles by focusing on advanced algorithms, machine learning, and automation. While traditional roles emphasise software development and systems maintenance, AI roles are centered around developing autonomous models and intelligent systems, with applications in data science, natural language processing, and predictive analytics, HR analysts noted.
Positions, such as ML Engineers, Data Scientists, and Prompt Engineers, are more specialised and multi-faceted, requiring expertise in areas like deep learning, robotics, and natural language processing. The rise of generative AI has transformed these roles, making them essential across various stages of AI implementation, from consulting to application development and support, they added.
The AI jobs are also better compensated than other traditional roles. Krishna Gautam, Business Head – Direct Hiring IT, Xpheno said, “About 80% of AI Jobs attract premium compensation packages given the short supply of trained and experienced AI engineering talent in India. The current low volume of experienced AI talent in India and the velocity with which talent upskilling is happening will keep the demand and packages high for 2- 3 years to come.”
Several AI-related job roles tend to receive premium compensation packages due to their specialised skills, high demand, and critical roles in driving AI initiatives within organisations. Compared to traditional tech roles, AI related roles command a premium of 40% - 80% for core engineering roles, he added.
Applicants applying for the AI specific job roles are required to have specialised skill sets. Vij lists that key competencies include proficiency in Python, R, Java, or C++, a strong understanding of mathematics and statistics, and expertise in machine learning algorithms. A deep knowledge of data science and programming is essential.
Familiarity with AI security and generative models, particularly LLM’s like GPT, is increasingly important. Strong critical reasoning and adaptability are also crucial for staying competitive. Familiarity with cloud platforms and big data tools is an added advantage, she adds.
HR analysts note that companies are hiring for both lateral and entry-level AI roles, but they primarily prefer lateral hires for mid-to-senior positions due to the need for advanced expertise and industry experience.
Entry-level opportunities exist for freshers who have upskilled through academic programs, certifications, and bootcamps, though demand for these positions is limited. The active demand for AI talent focuses on building clusters in AI Engineering and Development, while entry-level positions are expected to grow as enterprise AI consumption increases, they added.
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