Artificial Intelligence: Can Budget 2024 Help Bridge Skills Gap In India?

The advancement of artificial intelligence and, particularly, the rapid growth of generative AI models over the past year have created a significant skills gap in India.

Even as AI continues to revolutionise industries and reshape the future of work, there is a growing demand for professionals with expertise in the technology.

During her 2024 interim budget speech, Finance Minister Nirmala Sitharaman underscored the importance of skilling the youth of the country, highlighting the role of the Skill India Mission.

"The Skill India Mission has trained 1.4 crore youth, upskilled and reskilled 54 lakh youth, and established 3,000 new Industrial Training Institutes. A large number of new institutions of higher learning, including IITs, IIITs, IIMs and universities, have also been set up," Sitharaman had said.

Yet, recent data on the AI skills gap paints a concerning picture. According to an estimate by Nasscom, approximately 4.16 lakh people are working in the AI and data science sector, and there is a shortage of more than 2 lakh AI professionals in the country.

This gap is expected to widen further amid the disruptive adoption of AI technology across industries, considering that only one in four workers are currently using AI skills at the workplace, according to a recent Salesforce study.

The reasons behind this skills gap are multifaceted. The education system in India lacks comprehensive AI-focused curricula and training programmes. While some universities and institutions have started offering AI courses, they are often limited in scope and fail to provide students with practical industry-relevant skills. This leads to a mismatch between the skills possessed by graduates and those required by technology companies.

There is also a lack of awareness and understanding about AI among students and professionals alike. Many individuals are unaware of the potential career opportunities in the field of AI or the skills required to pursue them.

Furthermore, the rapid pace of technological advancements in AI makes it challenging for individuals to keep up with the latest trends and developments. Continuous learning and upskilling are crucial in this field, but there is a lack of accessible and affordable resources for individuals to acquire these skills.

"The strides made in skilling, particularly through the Skill India Mission, are not just commendable but pivotal for our nation's socio-economic development," Nandini Tandon, co-founder of Indusface, said. "However, it is imperative to ensure that the quality of training matches the dynamic demands of the rapidly evolving job market, ensuring that our youth are equipped with the right skills and competencies to thrive in the digital age."

In the budget, Sitharaman announced a Rs 1-lakh-crore corpus for research and innovation, which was welcomed by the industry, with experts indicating that it will encourage the private sector to scale up research and innovation and be a boost for tech-savvy youth.

"Focus on both upskilling initiatives and robust R&D investments will not only broad-base innovation and startup culture, but also result in the creation of a tech-savvy workforce," BenQ India Managing Director Rajeev Singh said.

However, to bridge this AI skills gap, a more concerted effort will be required from various stakeholders, including academia, industry and the government.

While investment in building technical institutes that support AI education and training programmes is a long-term strategy, in the short term, it is essential to develop a comprehensive and industry-relevant curriculum that covers core AI concepts and practical applications.

For example, generative AI requires a strong foundation in mathematics and statistics, along with programming. The government can collaborate with technology companies and academic institutions to design and implement AI-focused curriculum in schools and universities.

Collaboration between educational institutions and industry players will also help provide students with real-world exposure to AI technologies and challenges. Industry-academia partnerships can facilitate knowledge transfer, research collaborations and mentorship programmes, enabling students to acquire practical skills that are in line with requirements of the technology sector.

The onus lies on the government to also support initiatives aimed at promoting AI education and research through funding and policy interventions. By offering financial support and incentives to technical research and innovation, and to the institutions and industrial training centres undertaking them, the government can help develop a skilled workforce that meets the demands of the AI industry.

The estimated demand for AI and AI-related domain experts will cross 1 million in India by 2026, according to Nasscom. The critical element will thus be timely integration of AI skills development and training programmes in the present education and industry infrastructure.

AI is moving faster than humans, and time will be of the essence to bridge this skills gap.