Shortage Of Skilled Talent A Challenge To India’s AI Ambitions: Deloitte-Nasscom Report

As India aims to become a global leader in artificial intelligence, it faces a significant challenge: the shortage of skilled talent. Deloitte India, in collaboration with Nasscom, has released a report—Advancing India’s AI Skills—which highlights the need to cultivate a skilled AI workforce to propel the country’s digital economy. Despite growing AI adoption across industries, the shortage of qualified professionals could slow innovation and growth.

According to the report, the Indian AI talent demand is projected to grow from 6–6.5 lakh to more than 12.5 lakh during 2022–27. However, the AI market is expected to grow at 25–35%, potentially signalling a demand-supply gap in the talent pool and a need for upskilling existing talent.

Over the past year, 43% of the Indian workforce across sectors have used AI in their organisations. About 60% of workers and 71% of Gen Zs recognise that acquiring AI skills can enhance their career prospects, the report said.

Two of three Indians plan to learn at least one digital skill, with AI and machine learning topping the list. There will be a shift from trend and experience-based comprehension to knowledge and understanding-based comprehension. Computation will transition from skill- and resource-dependent to access- and collaboration-dependent. The focus of information will also move from being descriptive to predictive, the report noted.

“India is positioned to become a global AI powerhouse by 2030, with over a million highly skilled tech professionals. However, to truly harness this potential, the focus must shift towards not just quantity but the quality of AI talent. By reskilling the existing workforce and fostering new talent through robust government-academia-industry collaboration, we can ensure a steady pipeline of professionals ready to lead AI-driven innovation,” said Sathish Gopalaiah, president, tech and transformation, Deloitte South Asia.

“Our analysis highlights the urgent need for India to evolve from AI services to a dual focus on AI services and products. This strategic shift will elevate India's reputation in the global tech arena, drive economic growth and create high-value jobs,” he added.

The report makes several recommendations for industry leaders for fully leveraging AI:

• Invest in upskilling and reskilling initiatives to equip professionals with skills across the spectrum of identified segments, from AI-informed to AI experts.

• Develop and implement skilling pathways that address foundational and advanced AI skills, including a mix of theoretical knowledge and practical applications through courses, workshops, hackathons and internships.

• Industry and academia to foster collaboration and develop a skill pipeline. This includes integrating foundational AI coursework into academic programmes and establishing training programmes relevant to the industry.

• Use online platforms to develop a scalable training plan; practical exercises, virtual labs, real-world projects and boot camps are some operating models possible.

• Shift from being an AI services provider to developing AI products through interventions, such as incentivising R&D, upskilling talent in product development and establishing AI innovation hubs.

“By fostering collaboration between industry, academia and government, India’s tech sector can not only meet the rising demand for AI expertise but also lead the global AI revolution. Key stakeholders must work together to define essential skill sets and seamlessly integrate AI education into academic curricula, ensuring a robust and forward-thinking AI strategy,” said Sangeeta Gupta, senior vice president and chief strategy officer, Nasscom.