India's artificial intelligence (AI) sector could surpass 2.3 million job openings by 2027 while the AI talent pool is expected to grow to around 1.2 million, presenting an opportunity to reskill more than 1 million workers, according to a report published by Bain & Company on March 4.
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Global AI Talent Shortage
Globally, AI-related job postings have surged by 21 percent annually since 2019, with compensation increasing by 11 percent annually over the same period. However, the number of qualified candidates has not kept pace, creating a widening talent gap that is slowing AI adoption, according to new research from Bain & Company. In India, reskilling and upskilling existing talent will be key to meeting the growing demand.
"AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation," said Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company. "Executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses’ ability to scale and compete in an AI-driven world. Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent."
India's AI Job Market
"India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2x of the talent availability. The challenge—and opportunity—lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets," said Saikat Banerjee, Partner and leader in Bain & Company's AI, Insights, and Solutions practice in India, according to IANS report.
Banerjee noted that while "AI talent shortage is a significant challenge, it is not invincible".
"Addressing it requires a fundamental shift in how businesses attract, develop, and retain AI talent. Companies need to move beyond traditional hiring approaches, prioritize continuous upskilling, and foster an innovation-driven ecosystem," he reportedly said.
Nearly half (44 percent) of executives cited a lack of in-house AI expertise as a key barrier to implementing generative AI. This talent gap is expected to persist through at least 2027, with its impact varying in severity across global markets.
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Projected AI Job Demand
The report predicted that in the US, one in two AI jobs could be left unfilled by 2027. In the next two years, AI job demand in America could reach up to more than 1.3 million, while supply is on track to hit less than 645,000 - implying the need to reskill up to 700,000 workers in the country.
Germany could experience the biggest AI talent gap, with around 70 percent of AI jobs unfilled by 2027. With an estimated 62,000 AI professionals available to fill 190,000 - 219,000 job openings in 2027, there is a clear opportunity for reskilling employees in Germany, the report said.
The UK may also face talent shortfalls of more than 50 percent, with just 105,000 AI workers available to fill up to 255,000 AI jobs in 2027.
Similarly, Australia is expected to experience a shortfall of more than 60,000 AI professionals by 2027, with just 84,000 AI specialists available to fill up to 146,000 jobs, said the report.
