Bridging the AI talent gap to boost India’s tech and economic impact:Deloitte-nasscom report

National, 20 August 2024 – As India aims to become a global leader in AI, a significant challenge remains – the shortage of skilled talent. Deloitte India, in collaboration with nasscom, has released a report titled “Advancing India’s AI Skills: Interventions and programmes needed,” highlighting the pressing need to cultivate a highly 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.

The Indian AI talent demand is projected to grow from 600,000–650,000 to more than 1,250,000 during 2022–27. However, the AI market is expected to grow at 25–35 percent, potentially signalling a demand-supply gap in the talent pool and a need for upskilling existing talent. Over the past year, 43 percent of the Indian workforce across sectors have used AI in their organisations. About 60 percent of workers and 71 percent of GenZs recognise that acquiring AI skills can enhance their career prospects.

Additionally, two of three Indians plan to learn at least one digital skill, with AI and Machine Learning (ML) topping the list. There will be a shift from trend and experience-based comprehension to knowledge and understanding-based comprehension. Additionally, computation will transition from skill- and resource-dependent to access- and collaboration-dependent. The focus of information will move from being descriptive to predictive.

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. 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.”

“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. 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.

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. To maintain global competitiveness, it is imperative that we 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. 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 from the report

• Invest in upskilling and reskilling initiatives to equip professionals with the required skills across the spectrum of identified segments – from AI-informed to AI experts
• Industry stakeholders should develop and implement comprehensive skilling pathways that address both 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 – integrate foundational AI coursework into academic programs and establish training programmes relevant to the industry – to bridge the skill gap
• Use online platforms to develop a scalable training plan – practical exercises, virtual labs, real-world projects, MOOCs and boot camps are a few of the various operating models possible
• Undertake a strategic shift from being an AI services provider to developing AI products through targeted interventions, such as incentivising R&D, upskilling talent in product development and establishing innovation hubs that focus on AI-driven product creation

The report calls for a coordinated effort between industries, academia and the government to unlock India’s AI potential. This collaborative approach aims to build a skilled AI workforce, supporting India’s economic and technological leadership aspirations. By adopting these strategic measures, India can drive significant growth in AI exports, boost economic prosperity and reinforce its position as a global digital leader.

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This press release has been issued by Deloitte Touche Tohmatsu India LLP.
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