With the expected spike in artificial intelligence (AI) demand, India's IT sector is poised for a big shift, but a new analysis reveals a substantial gap in the country's AI talent pool. According to a joint study conducted by Nasscom and Deloitte, while India's AI market is expected to grow significantly, the existing talent pool may fall far short of meeting demand.
The paper, titled "Advancing India's AI Skills: Interventions and Programmes Needed," predicts that India's AI workforce would grow to over 1.25 million by 2027, up from 600,000-650,000 today. Despite this anticipated development, the AI market is estimated to grow at a CAGR of 25-35 per cent, resulting in a large skills gap.
Globally, the AI market for products and services is expected to reach USD 500 billion by 2027, with AI services accounting for USD 29 billion of a USD 120 billion market in 2023. India's potential market for AI services is projected to be worth over USD 25 billion. This growth pattern suggests a widening gap between rising demand for AI expertise and available trained labour.
Sathish Gopalaiah, President of Technology and Transformation at Deloitte South Asia, emphasised the importance of closing this gap. "Despite tremendous growth in AI-capable professions, the demand for AI is outpacing the supply of competent personnel. This disparity necessitates significant efforts in upskilling," he noted.
Sangeeta Gupta, Nasscom's Senior Vice President and Chief Strategy Officer, highlighted these worries, emphasising AI's revolutionary influence, which is comparable to previous technology upheavals such as Y2K and the digital wave. "The integration of artificial intelligence is becoming increasingly important in almost every element of technology. "The challenge will be to bridge the significant skills gap in order to fully capitalise on this shift," Gupta stated.
AI breakthroughs have the potential to considerably benefit India's IT sector, which was valued at around USD 250 billion in FY24 and contributed more than 7 per cent of GDP. The research emphasises the need for focused initiatives to improve India's AI capabilities, such as investments in upskilling programs, more collaboration between industry and academics and the construction of data and AI labs. As India seeks to increase its AI exports, resolving the skills deficit will be critical to realising the full promise of the AI revolution and maintaining its competitive advantage in the global tech environment.
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