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AI and the Future of Work: How India is Shaping the Global AI Talent Landscape - Chinmay Hegde, Co-founder, CEO, and Managing Director of Astrikos.ai

According to WEF’s The Future of Jobs Global Report 2025, 41% of companies plan workforce reduction as AI expands, contributing to the fear of job losses.  While this concern is valid, the role of AI in creating new jobs remains accurate, as the evolving workforce will see AI collaborating with human workers.  AI empowerment will also drive the emergence of new careers that demand different skill sets and expertise.  With AI and automation growing further, the skill gap in the present workforce becomes apparent indicating the urgent need to fix this crack.  Speaking at the recent AI Action Summit in Paris, India’s Prime Minister Narendra Modi said, "Loss of jobs is AI's most feared disruption, but history has shown that work does not disappear due to technology, only its nature changes. We need to invest in skilling and re-skilling our people for an AI-driven future."  He also stressed AI’s growing influence on economics, security, and society, while noting that India is among the countries that have the largest AI talent pools.

One of the world’s largest AI talent hubs

Stanford University’s Artificial Intelligence Report 2024, reveals India to have the highest AI Skill penetration rates (2.8), followed by the US (2.2) and Germany (1.9).  With the growing requirement for technical and data-driven talent such as Big Data, AI, and ML specialists, and Security Management personnel the jobs related to these roles are on the rise. These functions optimize operations and drive business growth and the talent to handle them is highly sought after.

India, with its large young population, is estimated to produce 18 million STEM (Science, Technology, Engineering and Mathematics) graduates, all thanks to the country’s stress on STEM education.  Furthermore, leading institutions such as IITs and IIITs continue to nurture AI talent.  India's IT services sector which has been leading in IT outsourcing worldwide is now focusing on AI R&D and AI-enabled solutions as well.

Besides having a great market potential India can become a global AI powerhouse and back-office for AI-delivery as there is a rising demand for AI skills globally.  The Indian AI market, especially software and services are estimated to grow at 25-33% CAGR through 2027, partly supported by the emergence of Gen AI (NASCOM).  This rise has triggered the need to develop AI skills.

Government initiatives and training to promote AI

The Indian government has recognized AI’s key role in the country’s economic growth and has launched several initiatives to promote AI talent as well as innovation.  The National Strategy for Artificial Intelligence led by NITI Aayod focuses on improving AI Research & Development across healthcare, agriculture, education, smart cities & infrastructure, and smart mobility & transportation.  The ambitious Digital India Initiative aims to transform the country into a digitally empowered society at the core of which lies the strategic integration of AI to revolutionize governance, improve citizen services, and drive economic growth.  FutureSkills PRIME, another government initiative aims to upskill professionals in emerging technologies, including AI and machine learning. Furthermore, the Union Budget 2025-26 proposed three Centers of Excellence for AI in education, with an outlay of ?500 crore, marking a significant step in AI education.

Booming AI startup ecosystem

India’s AI startup ecosystem is flourishing, with organizations across sectors leveraging AI to solve real-world challenges.  Today, a significantly high number of venture capitalists in the country are focusing on AI startups across various sectors driving their growth.  India has the third largest startup ecosystem globally with over 520 tech incubators and accelerators. According to the latest ?Freshworks? AI Workplace, Report Indian businesses are expected to increase AI spending by an average of 41% in 2025 which is the highest growth rate globally, as 79% of organizations plan to increase their AI budgets. Indian companies also believe AI's integration is necessary to ensure business success, driven mainly by confidence in its ROI.

The road ahead

With the increase in innovation, talent development, government policies, and investments driving AI-enabled change across several sectors India has the potential to become a global AI powerhouse.  To fully embrace the AI revolution, government agencies must also prioritize reskilling and upskilling their workforce to aid them navigate an increasingly digital landscape. Public sector employees, including those in law enforcement, healthcare, education, and administration, should gain a strong foundation in AI technologies, machine learning, and data analytics. Tailored training programs should be implemented to help them gain both technical competencies as well as the ethical considerations of AI governance. By promoting digital literacy and critical thinking, governments can empower their workforce to leverage AI responsibly, enhancing public services, policy development, and operational efficiency. Additionally, continuous professional development is essential to help employees adapt to evolving AI tools and drive innovation in public service delivery.

Only by nurturing the collaboration and co-operation between industry, academia, and government, the technology sector in India will be able to meet the high demand for AI expertise and turn this dream of becoming a global AI powerhouse into reality.