AI-related job openings in India will reach 2.3 million by 2027, while the available AI talent pool is expected to grow only to about 1.2 million.

India is on track to becoming a global hub for artificial intelligence (AI) talent, yet a critical skills gap threatens to slow its progress. A recent study by Bain & Company highlights an urgent need for large-scale upskilling, as the country faces a projected shortfall of over one million skilled AI professionals by 2027.

The report underscores that AI-related job openings in India will reach 2.3 million by 2027, while the available AI talent pool is expected to grow only to about 1.2 million. This widening gap—where job demand is estimated to be 1.52 times the available talent—necessitates a major workforce transformation through upskilling and reskilling efforts.

“India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, job openings in AI are projected to outstrip the talent pool significantly. The challenge and opportunity lie in reskilling and upskilling existing talent with emerging technologies and AI-driven skill sets,” said Saikat Banerjee, Partner at Bain & Company and leader of its AI, Insights, and Solutions practice in India.

The AI job market in India has witnessed an exponential rise since 2019, with AI-related job postings increasing by 21% annually. Salaries in the field have also grown at a steady rate, rising by 11% each year. However, despite the lucrative opportunities, the supply of skilled AI professionals has failed to keep pace with demand, creating a significant talent shortage that could impede the adoption of AI across industries.

The AI talent crunch is not limited to India. A global survey of executives found that a lack of in-house AI expertise remains one of the biggest obstacles to implementing generative AI technologies. This shortage is expected to persist well beyond 2027, affecting businesses worldwide and putting added pressure on talent-rich markets like India to fill the void.

If not addressed, this gap could impact India’s aspirations of becoming a key player in the global AI economy. AI is increasingly integrated across sectors such as healthcare, finance, manufacturing, and retail, and companies need a steady pipeline of trained professionals to support innovation and growth.

Bridging the AI talent gap will require a shift from traditional hiring strategies toward a long-term investment in workforce development. Companies must prioritize continuous learning and skills enhancement to ensure their employees remain competitive in the AI-driven job market.

“The AI talent shortage is a significant challenge, but 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, prioritise continuous upskilling, and foster an innovation-driven ecosystem,” Banerjee added.

To tackle this challenge, organizations are encouraged to implement structured upskilling programs, collaborate with educational institutions, and leverage AI-driven training tools. Government initiatives and industry-led training programs will also play a crucial role in preparing the workforce for the AI-driven future.

India’s ability to close this talent gap will not only determine its position in the global AI landscape but also impact its economic growth. With strategic investment in skill development, India has the potential to solidify its status as a global AI powerhouse by 2027.