By Sunil Nehra, CEO – IT Staffing, FirstMeridian Business Services
The employment landscape in India is undergoing a significant transformation, driven by the rapid deployment of artificial intelligence (AI) and advancements in machine learning, the Internet of Things (IoT), and automation. The Government of India’s allocation of ₹10,345 crore towards the India AI Mission in March 2024 has provided crucial support to enhance the country’s AI capabilities, fostering a vibrant ecosystem of young talent and boosting India’s global competitiveness.
AI Applications Expanding across Industries, calling for the need for extensive upskilling.
As AI applications expand across diverse sectors, job roles within this domain are projected to be among the fastest-growing, extending beyond traditional technology-driven organisations. These roles are not merely focused on automating repetitive tasks; they are essential for developing scalable solutions in industries such as healthcare, defense, manufacturing, human resources, and real estate. This shift necessitates a workforce equipped with a blend of technical skills and soft competencies that align with evolving employer demands.
AI’s influence extends well beyond its roots in computer science; it has revolutionised fields such as marketing, finance, business operations, design, and manufacturing. The push for enhanced computing power has led to a global commitment to expand data centres by approximately 19% to 22% from 2023 to 2030, underscoring the escalating demand for AI-driven tools and services across various sectors. Consequently, it is imperative for both global and Indian workforces to engage in upskilling initiatives to meet the rising demand for talent in AI and machine learning.
However, jobs will transform and not disappear, and India’s workforce is thus undergoing a tectonic shift.
While there are concerns about job losses due to AI adoption, on the contrary, , AI is transforming job roles. For instance, the emergence of large language models (LLMs) within generative AI (GenAI) has created a demand for new skills such as prompt engineering—an essential competency that involves formulating effective queries to elicit accurate responses from AI systems. GenAI alone is projected to contribute up to $4.4 trillion annually to the global economy, impacting sectors from aerospace to banking and life sciences.
The Indian workforce is increasingly recognising the significance of AI and its potential benefits across industries. As a result, many professionals are proactively upskilling to remain relevant in an evolving job market. India is now among the top five countries globally with the fastest-growing AI talent pool. This trend reflects a marked shift in recruitment priorities, particularly within the IT sector, which remains the largest contributor to this growth.
Seizing the AI opportunity is critical as future job opportunities are emerging rapidly.
Forecasts indicate a compound annual growth rate (CAGR) of 25% to 35% for the AI market between 2024 and 2027, potentially exacerbating the existing gap between demand and supply for AI talent in India. To capitalise on this opportunity and establish itself as a global AI powerhouse, India must prioritise developing its workforce’s skills in alignment with these trends.
As we approach 2025, emerging technologies like AI are expected to drive a 20% increase in new job opportunities within India’s IT sector. This growth will be accompanied by rising salaries for specialised roles such as generative AI engineers and algorithm specialists—projected to increase by 25% to 30% for mid-level positions. Industries like Global Capability Centres (GCCs) have already created over 600,000 jobs since 2018 and are projected to employ between 2.5 million and 2.8 million professionals by 2030. Moreover, non-tech sectors such as banking, financial services, insurance (BFSI), and telecommunications are also expected to ramp up their hiring of IT professionals. The gig economy is set for remarkable growth as well; it is projected to triple in size by 2030, employing around 24 million.
In conclusion, as global economies increasingly embrace AI technologies, India’s workforce stands at a pivotal juncture. By focusing on continuous learning and skill enhancement—particularly in high-demand areas like AI-driven automation and data analytics—India can ensure that it not only meets current industry demands but also prepares future generations for success in an ever-evolving technological landscape.