India's Thriving AI Industry Sees Surge In Talent & People Development

India's Artificial Intelligence (AI) industry is experiencing an unprecedented surge, with projections indicating robust growth in both market expansion and talent development. According to the latest findings from the joint report by nasscom and BCG, titled "AI's Role in Turbocharging the Industry," India's AI market is set to grow at an impressive Compound Annual Growth Rate (CAGR) of 25% until 2027. This growth is not only driven by increased investments but also by a burgeoning talent pool and a concerted effort by companies to upskill their workforce.

One of the report's key highlights is the remarkable growth of India's AI talent base. With approximately 420,000 employees currently engaged in AI-related job functions, India boasts the second-highest installed talent base globally. Moreover, the country stands out with three times more AI-skilled talent than any other nation, reflecting its commitment to nurturing a skilled workforce for the future.

Leading firms have recognized the importance of human capital in the AI journey and accordingly invested heavily in upskilling and reskilling their workforce in AI.  The report reveals that 90% of the top 25 providers have made significant commitments to upskilling their workforce in Generative AI (GenAI) and other AI-related technologies, with some allocating $1 Bn over the next 3 years to upskilling. There has also been a corresponding increase in the demand for AI skills - AI leadership hiring seeing 15%+ growth in AI/ML jobs1 in India in the last 12 months with positions like AI Engineers growing at 70%+ YoY.  While ML, Python & SQL continue to dominate current skills requirement in AI, GitHub, PyTorch and Databricks are emerging as important skills as well. The right technical expertise acts as a key differentiator for these players, enabling them to converse with potential & existing clients. Additionally, around 80% of companies are actively incorporating new AI-specific roles across their organizations, ensuring the necessary skill enhancements for their existing workforce. Large Tech and BPO are hiring heavily offshore, Mid Tech are focusing on offshore + nearshore.

The report underscores the industry's collaborative efforts to foster talent development and innovation. Over 70% of surveyed companies have well-defined frameworks for financing AI use cases, while more than 70% have established partnerships, particularly with GenAI and cloud partners. Furthermore, with dedicated AI leadership and strong executive buy-in, companies are poised to drive AI initiatives forward with clarity and purpose.

India's AI industry is witnessing a remarkable transformation, fueled by unprecedented growth in market demand, investments, and talent development. With a strong emphasis on upskilling, industry collaboration, and ethical governance, Indian companies are poised to lead the global AI revolution, driving innovation and value creation across industries.