India's AI Sector Faces Talent Crunch: 2.3 Million Job Openings Expected by 2027

2.3 mn job openings by 2027 in India's AI sector, offers opportunity to reskill over 1 mn workers: Bain & Company

India's AI sector is poised for major growth, with job openings expected to exceed 2.3 million by 2027. However, the talent pool may only grow to 1.2 million, creating significant opportunities for reskilling. A talent gap is slowing AI progress globally, with the U.S., Germany, UK, and Australia also facing shortages.Contrary to the common perception that Artificial Intelligence will eliminate jobs, a recent study by Bain and Company stated that India's AI sector is set to experience rapid growth, with job openings expected to surpass 2.3 million by 2027. While the talent pool may grow to just 1.2 million, this presents a significant opportunity for reskilling and upskilling existing professionals. Companies are facing a growing shortage of skilled professionals as they rush to implement artificial intelligence (AI) solutions. 44 per cent of executives report a lack of in-house AI expertise is slowing their businesses' ability to adopt AI technology. Since 2019, the demand for AI-related skills has surged by 21 per cent annually, while compensation for AI professionals has risen 11 per cent each year. Despite this, the number of qualified candidates has not kept pace, causing a widening talent gap that is hindering AI progress for many companies. "AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation," said Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company. The research points out that the talent shortage is expected to continue until at least 2027, affecting global markets in different ways. In the United States, Bain predicts up to 1.3 million AI jobs will be needed by 2027, yet only 645,000 qualified professionals are expected to be available. Similarly, Germany could face a shortage of 70 per cent of its AI workforce by 2027, with the UK and Australia also experiencing major talent shortfalls. Saikat Banerjee, Partner and leader of Bain & Company's AI, Insights, and Solutions practice in India, said, "India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2 times of the talent availability." He added, "The challenge--and opportunity-- lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets."

India's AI Sector Could Surpass 2.3 Million Job Openings by 2027, Says Bain and Company

Companies must prioritise reskilling and upskilling to close the AI talent gap and remain competitive. India's artificial intelligence (AI) sector could surpass 2.3 million job openings by 2027 while the AI talent pool is expected to grow to around 1.2 million, presenting an opportunity to reskill more than 1 million workers, according to a report published by Bain & Company on March 4. Also Read: Bain & Company Expands OpenAI Partnership to Accelerate AI Solutions Delivery Globally, AI-related job postings have surged by 21 percent annually since 2019, with compensation increasing by 11 percent annually over the same period. However, the number of qualified candidates has not kept pace, creating a widening talent gap that is slowing AI adoption, according to new research from Bain & Company. In India, reskilling and upskilling existing talent will be key to meeting the growing demand. "AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation," said Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company. "Executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses' ability to scale and compete in an AI-driven world. Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent." "India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2x of the talent availability. The challenge -- and opportunity -- lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets," said Saikat Banerjee, Partner and leader in Bain & Company's AI, Insights, and Solutions practice in India, according to IANS report. Banerjee noted that while "AI talent shortage is a significant challenge, it is 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, prioritize continuous upskilling, and foster an innovation-driven ecosystem," he reportedly said. Nearly half (44 percent) of executives cited a lack of in-house AI expertise as a key barrier to implementing generative AI. This talent gap is expected to persist through at least 2027, with its impact varying in severity across global markets. Also Read: AI Is the Engine That Will Empower India's Double-Digit Growth: Akash Ambani The report predicted that in the US, one in two AI jobs could be left unfilled by 2027. In the next two years, AI job demand in America could reach up to more than 1.3 million, while supply is on track to hit less than 645,000 - implying the need to reskill up to 700,000 workers in the country. Germany could experience the biggest AI talent gap, with around 70 percent of AI jobs unfilled by 2027. With an estimated 62,000 AI professionals available to fill 190,000 - 219,000 job openings in 2027, there is a clear opportunity for reskilling employees in Germany, the report said. The UK may also face talent shortfalls of more than 50 percent, with just 105,000 AI workers available to fill up to 255,000 AI jobs in 2027. Similarly, Australia is expected to experience a shortfall of more than 60,000 AI professionals by 2027, with just 84,000 AI specialists available to fill up to 146,000 jobs, said the report.

Over 2 million AI jobs up for grabs in India by 2027...but there's a serious problem

India may face a shortage of skilled AI professionals to fill over 2.3 million job openings by 2027, with the talent pool projected to reach only 1.2 million. The need for reskilling and upskilling is crucial. Despite growing AI job postings and salaries, executives view the talent gap as a barrier to innovation and competition.India is expected to see over 2.3 million AI job openings by 2027, but the country may face a shortage of skilled professionals to fill them, according to a new study by Bain & Company. While India's AI talent pool is projected to grow to around 1.2 million by that time, there will still be a gap of more than 1 million roles that will require focused reskilling and upskilling efforts. "India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2x of the talent availability. The challenge -- and opportunity -- lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets," said Saikat Banerjee, Partner and leader in Bain & Company's AI, Insights, and Solutions practice in India. He added, "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, prioritize continuous upskilling, and foster an innovation-driven ecosystem." The Bain study shows that AI-related job postings have increased by 21% every year since 2019, while salaries for AI roles have grown at an annual rate of 11%. Despite this growth, the number of skilled professionals has not kept up with demand, creating a talent gap that is affecting AI adoption across industries. Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company, said, "AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation. Executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses' ability to scale and compete in an AI-driven world. Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent." Bain's research highlights that nearly 44% of executives globally cite the lack of in-house AI expertise as a major barrier to implementing generative AI. While this challenge is global, India stands out both for its potential to become a talent hub and for the scale of its talent gap. Globally, other markets are also grappling with similar challenges. In the United States, AI job demand is expected to exceed 1.3 million by 2027, but supply may fall short by around 700,000 roles. Germany may see 70% of AI jobs remain unfilled by 2027, with only 62,000 AI professionals available for up to 219,000 jobs. The United Kingdom may face more than a 50% shortfall, and Australia may have over 60,000 roles unfilled by 2027.

The AI gold rush is here -- but there aren't enough people to fill all open positions

Businesses worldwide face a shortage of skilled professionals as AI adoption accelerates, with AI-related job postings and compensation rising annually. By 2027, India could encounter a significant talent gap in AI, with job openings far exceeding the available talent pool. Reskilling and upskilling existing employees are crucial to overcoming this challenge and fostering innovation.Businesses around the world are facing a growing shortage of skilled professionals as they accelerate efforts to adopt Artificial Intelligence (AI). According to a new report by Bain & Company, AI-related job postings have increased by 21% every year since 2019, and compensation for AI roles has risen by 11% annually during the same period. However, the supply of qualified talent is not growing fast enough, creating a widening talent gap that is slowing AI adoption. "AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation," said Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company. "Executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses' ability to scale and compete in an AI-driven world. Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent." In India, AI job openings are expected to be 1.5 to 2 times the available talent pool by 2027. Saikat Banerjee, Partner and leader in Bain & Company's AI, Insights, and Solutions practice in India, said, "India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2x of the talent availability. The challenge -- and opportunity -- lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets." He added, "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, prioritize continuous upskilling, and foster an innovation-driven ecosystem." Bain's research highlights that nearly 44% of executives cite a lack of in-house AI expertise as a key barrier to implementing generative AI. The talent shortage is expected to continue until at least 2027, affecting different countries in varying degrees. In the United States, up to one in two AI jobs could remain vacant by 2027. Bain projects that AI job demand in the U.S. could exceed 1.3 million over the next two years, while the available talent pool may stay under 645,000, indicating a need to reskill around 700,000 workers. (Join our ETNRI WhatsApp channel for all the latest updates) Germany could face the biggest AI talent gap, with around 70% of AI jobs possibly unfilled by 2027. With an estimated 62,000 AI professionals available to fill between 190,000 and 219,000 roles, there is a clear need for large-scale reskilling efforts in the country. The United Kingdom may experience a talent shortfall of more than 50%, as the available 105,000 AI workers may be insufficient to fill up to 255,000 jobs expected by 2027. In India, AI job openings are projected to surpass 2.3 million by 2027, but the AI talent pool is expected to grow to only around 1.2 million, leaving a gap of over 1 million roles that would require reskilling and upskilling initiatives. Australia could also see a shortfall of more than 60,000 AI professionals by 2027, with only 84,000 specialists available to fill up to 146,000 jobs. The Bain study underlines that unless companies focus on talent development and new hiring approaches, the AI talent gap may continue to hinder business growth and innovation globally.

'India to Face AI talent Crunch With 2.3 Mn Job Openings by 2027'

AI job postings up 21% annually since 2019, talent gap expected to persist through 2027 As demand for expertise outpaces supply, a shortage of skilled AI professionals is slowing AI adoption, according to a recent report by Bain & Company. At a global level, AI-related job postings have grown by 21% annually since 2019, with compensation rising 11% per year. However, businesses struggle to find qualified talent, indicating a widening skills gap. As AI takes over industries, companies cannot fill AI roles and risk falling behind in innovation and competition. "AI is at the forefront of corporate transformation, but without the right talent," said Sarah Elk, Americas head of AI, insights, and solutions at Bain & Company. The report says executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses' ability to scale and compete in an AI-driven world. "Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent," Elk added. India is expected to face one of the largest AI talent shortages, with job openings projected to exceed 2.3 million by 2027. The available workforce is expected to reach only 1.2 million, leaving a gap of over 1 million professionals with the potential to reskill to stay relevant. In the United States, AI job demand could surpass 1.3 million in two years, but with only 645,000 skilled professionals available, up to 700,000 positions may go unfilled. According to the report, Germany is expected to face the most severe shortage, with up to 70% of AI jobs unfilled by 2027. The United Kingdom may see a 50% shortfall, with just 105,000 professionals available for up to 255,000 roles. Meanwhile, Australia could face a shortfall of more than 60,000 AI specialists, with only 84,000 available to meet a demand of 146,000 jobs. In addition, another LinkedIn report released in 2025 highlights AI-driven job growth, with AI engineers as the most sought-after role. Other notable positions include aircraft maintenance engineers and robotics technicians, both of which are gaining prominence across industries. Similarly, Naukri.com identified industries fuelling job market expansion in December 2024. Artificial Intelligence and Machine Learning topped charts with a 36% growth year-on-year, followed by oil and gas with over 13% growth, FMCG with over 12% growth, and healthcare recording 12% growth. Naukri CBO Pawan Goyal had said: "India's job market is entering 2025 with vigour, driven by AI and machine learning growth and creative sectors."