Indian Companies Prioritize Generative AI: 99% to Hire for GenAI Roles by 2025 Despite Skill Gap

Indian Companies Embrace Generative AI

A recent study by Amazon Web Services (AWS) and Access Partnership has revealed a significant shift in the Indian corporate landscape towards generative AI adoption. The 'Generative AI Adoption Index' survey, which included 415 senior IT decision-makers across various sectors, highlights the growing importance of AI in Indian businesses 1 2.

Prioritizing Generative AI in Budgets

Source: Economic Times

The study found that 64% of Indian companies have prioritized generative AI in their 2025 budgets, surpassing other technological investments such as security (21%) and compute (10%) 1. This focus on AI has led to a notable trend in executive appointments, with 83% of organizations having already appointed Chief AI Officers (CAIOs) to spearhead their AI initiatives. An additional 15% of companies plan to make similar appointments by 2026 1 2.

Hiring Plans and Skill Gap Challenges

Despite the current skill gap in the AI sector, an overwhelming 99% of Indian organizations expect to hire for generative AI roles in 2025 1. This ambitious hiring plan comes in the face of significant challenges, including unclear skilling needs, implementation uncertainty, and budget constraints 1.

The demand for AI and data talent has grown by nearly 45%, but there is a severe shortage of qualified professionals, particularly in emerging fields like generative AI. Reports suggest that there is only one qualified professional for every ten open roles in this sector 2.

Current State of AI Adoption

The study reveals that 98% of organizations are already using generative AI tools, with 43% having fully integrated these technologies into their workflows 1 2. Approximately half of the surveyed companies are expected to move their AI projects to production by 2025 1.

Strategies for AI Implementation

Organizations are adopting a hybrid approach to AI implementation:

Nearly two-thirds plan to use custom applications built on out-of-the-box models
Many are opting for fine-tuned models enhanced with proprietary data
Only 42% plan to use out-of-the-box models with minimal customization 1

Challenges in Change Management

While the enthusiasm for AI adoption is high, there are significant challenges in managing this transition. Currently, 75% of organizations lack a change management strategy to support employees through AI transitions. However, this number is projected to decrease to 9% by the end of 2026, indicating a growing awareness of the need for structured approaches to AI integration 1 2.

Economic Impact and Job Transformation

The adoption of AI is expected to have a significant impact on the Indian economy. A report suggests that AI could transform 38 million jobs, potentially boosting productivity in the organized sector by 2.61% 2. However, the lack of skilled talent remains a critical barrier to realizing this potential.

Industry Support and Initiatives

To support this transition, AWS has launched a $100 million Generative AI Innovation Centre to connect organizations with AI experts. The company also offers over 80 free courses through AWS Skill Builder and collaborates with partners such as TCS, Infosys, and Wipro to support industry-specific implementations 1.

Additionally, AWS launched its India Tech Alliance in February 2024 to boost career readiness and build capabilities in modern technologies like AI. This initiative has already enabled more than 5,000 learners in India on generative AI fundamentals and prompt engineering 2.

As Indian companies continue to invest in and adopt generative AI technologies, the coming years are likely to see significant changes in the corporate landscape, with AI playing an increasingly central role in business operations and strategies.