Advancing India’s AI Skills, Bridging the Talent Gap; Deloitte Report

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According to report from Deloitte, the Indian AI talent demand is set to surge from 600,000–650,000 to over 1,250,000 during the period from 2022 to 2027. This exponential growth reflects the country’s commitment to AI-driven transformation.

India’s ambitious goal of becoming a global AI leader faces a critical hurdle: the shortage of skilled talent as per Deloitte India report.

The company in India, in collaboration with NASSCOM, has released a comprehensive report titled “Advancing India’s AI Skills: Interventions and Programmes Needed.”

This report emphasized the urgent need to cultivate a highly skilled AI workforce to drive the country’s digital economy. Despite the increasing adoption of AI across industries, the scarcity of qualified professionals threatens to impede innovation and growth.

The Talent Demand-Supply Equation: Deloitte Report

Projected Talent Demand: The Indian AI talent demand is set to surge from 600,000–650,000 to over 1,250,000 during the period from 2022 to 2027. This exponential growth reflects the country’s commitment to AI-driven transformation.

Market Growth: Simultaneously, the AI market is expected to expand at an impressive rate of 25–35 percent. However, this growth potentially signals a demand-supply gap in the talent pool, necessitating upskilling efforts.

AI Adoption Trends: NASSCOM & Deloitte Comprehensive Report

Workforce Engagement: Over the past year, 43 percent of India’s workforce have actively used AI in their organizations. This is across various sectors This trend highlights the increasing integration of AI into daily work processes.

Career Prospects: A significant majority recognize that acquiring AI skills can significantly enhance their career prospects. This is 60 percent of workers and 71 percent of Gen Z individuals. The allure of AI proficiency is driving individuals to seek digital skill development opportunities.

Shifting Comprehension and Computational Paradigms

Knowledge-Based Comprehension: As AI adoption grows, there will be a shift from trend-based and experience-driven comprehension to knowledge-based understanding. Professionals must grasp the underlying principles of AI to harness its potential effectively.

Collaboration-Dependent Computation: Computation will transition from being solely skill- and resource-dependent to access- and collaboration-dependent. Online platforms, practical exercises, and virtual labs will play a crucial role in upskilling efforts.

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Sangeeta Gupta, Senior VP & Chief Strategy Officer, NASSCOM said, “AI is no longer confined to a single sector; it has permeated across industries, transforming businesses worldwide.”

Sangeeta added, “To maintain global competitiveness, we must develop the skills necessary to build a future-ready workforce. 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.”

She concluded by saying, “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.”

Recommendations for Industry Leaders

Upskilling Initiatives: Industry stakeholders should invest in upskilling and reskilling initiatives. These efforts should span the entire spectrum of AI skills, from foundational knowledge to advanced expertise.

Comprehensive Skilling Pathways: Develop and implement comprehensive skilling pathways that blend theoretical knowledge with practical applications. Workshops, hackathons, and internships are essential components.

Industry-Academia Collaboration: Foster collaboration between industry and academia to create a robust skill pipeline. Integrating foundational AI coursework into academic programs will bridge the talent gap.

Scalable Training Plans: Leverage online platforms to create scalable training plans. Practical exercises, virtual labs, real-world projects, MOOCs, and boot camps offer diverse learning models.

Shift to AI Product Development: Industry players should strategically transition from being AI services providers to developing AI products. Incentivizing R&D and upskilling talent for product development will drive innovation.

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Perspective from Key Stakeholders

Based on the report insights, Sathish Gopalaiah, President, Tech & Transformation, Deloitte South Asia said, “India is positioned to become a global AI powerhouse by 2030, with over a million highly skilled tech professionals.”

He added, “However, to truly harness this potential, the focus must shift towards not just quantity but the quality of AI talent.”

Sathish further said, “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.”

“Moreover, 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 said.

“As we aim to advance AI exports, developing a skilled workforce and fostering an enabling environment are paramount to positioning India as a leader in the AI landscape,” he added.

Conclusion

India’s journey toward AI leadership requires concerted efforts from industries, academia, and the government.

By adopting these strategic measures, India can unlock its AI potential, drive economic prosperity, and solidify its position as a global digital frontrunner.

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