AI Adoption Surges in India, but Talent Shortage Poses Challenges

98% of Indian Business Leaders Prioritize AI Adoption, But Talent Shortage Persists: LinkedIn

Finding the right mix of AI and human skills is a challenge for nearly 3 in 5 recruiters in India LinkedIn research shows that 54% of HR professionals in India report that only half, or fewer, of the job applications they receive meet all required and preferred qualifications. Finding candidates with the right technical (61%) and soft skills (57%) remains their biggest hiring challenge. The hardest-to-find skills in India include technical/IT skills such as software development, engineering (44%), AI skills (34%) and soft skills like communication and problem-solving (33%).

98% of Indian business leaders are speeding up AI adoption, but skilled talent remains hard to find: LinkedIn

54% of recruiters in India say only half or less than half of job applications meet required qualifications. 64% believe AI-powered tools can make hiring faster and easier LinkedIn is launching a new Hiring Assistant to help recruiters spend more time on their most impactful work, and new AI-powered coaching features to help companies build in-demand skills Two years on, generative AI has evolved from a buzzword into a business essential, with leaders across India embracing its potential. According to new research by LinkedIn, the world's largest professional network, 98% of business leaders in India say helping their organisations speed up AI adoption is their strategic priority in 2025. However, finding talent with the right skills remains a challenge. Finding the right mix of AI and human skills is a challenge for nearly 3 in 5 recruiters in India LinkedIn research shows that 54% of HR professionals in India report that only half, or fewer, of the job applications they receive meet all required and preferred qualifications. Finding candidates with the right technical (61%) and soft skills (57%) remains their biggest hiring challenge. The hardest-to-find skills in India include technical/IT skills such as software development, engineering (44%), AI skills (34%) and soft skills like communication and problem-solving (33%). Companies are exercising 'selective hiring' in 2025 HR professionals in India also state they receive too many applications (47%) from candidates who are not a fit for the role (41%), and are hiring more selectively in 2025. More than half of HR professionals in India say they would only consider reaching out to (55%) and hiring (54%) candidates who meet 80% or more of job qualifications. Ruchee Anand, India Country Head, Talent & Learning Solutions, LinkedIn said, "AI is reshaping how we hire and develop talent, but the real unlock isn't just adopting AI -- it's making it work for the business. Too often, companies pour resources into AI tools without the right talent to unlock their full potential, turning a game-changing opportunity into a missed one. To break this cycle, businesses need to approach hiring with a skills-first mindset -- because while AI will be the tool that unlocks innovation, it's human skills like creativity, communication, and collaboration that will help companies truly stay ahead of change." Leaders are doubling down on upskilling their workforce More than 8 in 10 (84%) HR professionals in India rank helping employees build new skills as a top priority for 2025, with a strong focus on upskilling in AI (84%) and essential soft skills like communication and collaboration (82%). This sentiment is echoed by all (100%) surveyed L&D professionals in India who agree that soft skills (like creativity, curiosity, and communication) are becoming just as critical as technical expertise. Nearly half (48%) of Indian leaders also say that investing in learning and development for AI training will be key to accelerating adoption. LinkedIn is introducing new AI-powered tools to help recruiters spend more time on their most impactful work As companies navigate a cautious economic landscape, LinkedIn is introducing new AI-powered tools to help recruiters focus on the most strategic, people-centric tasks for their job: Nearly 2 in 5 (37%) of HR professionals in India spend 1-3 hours daily sifting through job applications, and more than 3 in 5 (64%) believe AI-powered tools can make hiring faster and easier. LinkedIn's new Hiring Assistant is designed to take on a recruiter's most repetitive, time-consuming tasks so they can spend more time on their most impactful work like advising hiring managers, connecting with candidates, and creating exceptional candidate experiences. "I find the speed and delivery of candidates good and believe LinkedIn's Hiring Assistant will continue to improve the team's productivity," said Sachin Borde, Global Talent Attraction Leader, IBM. 7 in 10 (71%) of HR professionals in India cite difficulties accessing tailored learning resources. LinkedIn Learning's new AI-powered coaching feature helps learners build soft skills through interactive, real-world scenarios using text or voice. It helps them gain confidence in workplace conversations like performance reviews and feedback discussions, and learners receive actionable, personalized feedback at the end of each practice session. Read more here.

Indian business leaders prioritise AI adoption, but talent gap looms: LinkedIn report

Generative AI has rapidly transitioned from a mere buzzword to a critical business imperative for Indian organisations, with most business leaders in India prioritising AI adoption, says a report. However, a significant challenge remains: finding professionals with the right AI and related skills to unlock the technology's full potential, a report by professional networking platform LinkedIn has revealed. "Around 54 per cent of HR professionals in India report that only half, or fewer, of the job applications they receive meet all required and preferred qualifications. Finding candidates with the right technical (61 per cent) and soft skills (57 per cent) remains their biggest hiring challenge. "The hardest-to-find skills in India include technical/IT skills such as software development, engineering (44 per cent), AI skills (34 per cent) and soft skills like communication and problem-solving (33 per cent)," the report said. This scarcity of qualified candidates is forcing companies to become increasingly selective in their hiring processes. According to the report, companies are exercising 'selective hiring' in 2025 with more than half of HR professionals in India saying they would only consider reaching out to (55 per cent) and hiring (54 per cent) of candidates who meet 80 per cent or more of job qualifications. India is LinkedIn's second largest market in terms of membership, growing more than 20 per cent year-on-year. LinkedIn has over 150 million members in India. Ruchee Anand, India Country Head, of Talent & Learning Solutions at LinkedIn, emphasised the critical need for a skills-first approach to hiring. "AI is reshaping how we hire and develop talent, but the real unlock isn't just adopting AI -- it's making it work for the business. Too often, companies pour resources into AI tools without the right talent to unlock their full potential, turning a game-changing opportunity into a missed one. "To break this cycle, businesses need to approach hiring with a skills-first mindset -- because while AI will be the tool that unlocks innovation, it's human skills like creativity, communication, and collaboration that will help companies truly stay ahead of change," she said. Recognising the urgent need to bridge the skills gap, Indian companies are doubling down on upskilling initiatives. This commitment to employee development extends to leadership, with nearly half (48 per cent) of Indian leaders stating that investing in learning and development for AI training will be key to accelerating adoption. The report is based on a combination of survey data and LinkedIn platform insights. It, among others, involved global studies of 1,991 C-suite executives, and over 300 Chief Human Resources Officers working in businesses with more than 1,000 employees.

For India Inc, the struggle is real to incorporate AI in hiring

Hiring has become challenging as AI reshapes the landscape. AI is not just improving the hiring process but forcing companies to prioritize skills over credentials. Human abilities like communication and creativity now hold more value. Organizations that adapt to these changes will thrive in the AI-driven innovation economy.Hiring today is harder than ever -- for job seekers and recruiters alike. Artificial intelligence (AI) is changing hiring -- but not how you think. In an exclusive conversation with ET, Aneesh Raman, chief economic opportunity officer at professional networking site, LinkedIn revealed that more than 200 million professionals globally have signalled that they are open to work, yet nearly half of Indian professionals say they are applying more but hearing back less. At the same time, recruiters say finding qualified talent has become tougher. "We're seeing more applications, but also more frustration," said Raman. "Nearly 70% of recruiters in India say it's harder to find the right talent. AI is stepping in to bridge this gap." With 84% of Indian recruiters believing it improves the quality of hires, AI is already rewriting the hiring playbook. LinkedIn data shows that AI-assisted messages to candidates see a 44% acceptance rate -- 11% faster than traditional outreach. But here's the twist -- AI isn't just changing how companies hire, it's forcing them to rethink who they hire. "Jobs are no longer best understood as titles, but as a set of tasks," said Raman. "And as AI reshapes those tasks, the only way forward is to hire for skills, not credentials alone." AI isn't just another tech investment -- it's a fundamental shift in how businesses operate. Raman said, "Despite 98% of Indian C-suite leaders saying AI adoption is critical, most organisations are struggling with change management". He added, "The biggest barrier isn't the technology -- it's the leadership mindset. AI isn't just a tool; it's a culture shift. Companies that treat it as a tech upgrade will be left behind." So far, AI adoption is working best where CTOs and CHROs are leading the charge together, ensuring AI is not just about automation, but also about building a more innovative workforce. AI is disrupting hiring, while also rewriting the job description of managers. As automation takes over routine tasks, the role of a manager is shifting from oversight to mentorship. "This is not a future trend -- it's already happening," Raman said. "If organisations don't rethink how they manage people, they will be disrupted." LinkedIn data shows that 85% of CHROs believe managerial roles must be redefined in an AI-driven world. The new mandate? Less task supervision, more leadership, innovation, and team development. AI handles data, analysis, and repetitive tasks -- but, at present, it still can't replace human curiosity, creativity, and judgment. That's why communication, problem-solving, and adaptability are emerging as the most in-demand skills across industries. "The new hard skills are the non-technical skills -- curiosity, compassion, creativity, courage, and communication," said Raman. "AI is shifting work in a way that makes our human abilities the differentiator." This shift is already redefining hiring criteria. GitHub's AI-powered Copilot, which helps developers code more efficiently, has reshaped software engineering hiring -- companies no longer prioritise computer science degrees but focus on problem-solving and interpersonal skills. "The shelf life of credentials is shrinking," Raman said. "If you're not hiring for skills today, you're already falling behind." Just as the internet did two decades ago, AI is creating wholly new job categories. Expect roles like 'Talent Consultants' and 'Chief AI Officers' to become mainstream. "This is bigger than AI. This is about the evolution of human work," Raman says. "The future will belong to those who embrace change and build the skills to thrive in the innovation economy."