India has blessed with the highest AI skills penetration with 3x more AI skilled talent than other countries.
NEW DELHI, India (AI Reporter/News): India’s AI talent demand is set to surge by an estimated 15%, indicating a significant growth trajectory in the tech industry’s future, the recent report jointly published by BCG and NASSCOM revealed. In the digital age, where technology redefines boundaries and accelerates progress, India is at the forefront, pioneering the AI revolution. The report, “AI Powered Tech Services: A Roadmap for Future Ready Firms,” February 2024, underscores the transformative impact of Artificial Intelligence (AI) and General AI (GenAI) on the tech services sector, showcasing India’s leadership in navigating the complexities of this burgeoning field.
As AI continues to turbocharge the industry, India’s dynamic market, burgeoning talent pool, and innovative ecosystems are pivotal in shaping the future of businesses and economies worldwide.
The AI & GenAI Market Landscape in India
AI market in India projected to grow at ~25-35% CAGR till 2027, supported by a large AI talent base and high AI investments.
Explosive Growth in AI Talent Demand
India’s AI talent pool is booming, growing 14 times faster than the global average in the past 7 years. This positions India as a major AI hub. However, demand for AI talent in India is expected to grow even faster than the market itself, at 15% compared to 25-35%. The report highlights the need for India to improve existing skills and develop new strategies to meet this growing demand.
Tech services firms lead the charge in talent acquisition, with AI leadership and engineering roles seeing significant increases in hiring. The demand for skills in ML, Python, and SQL remains high, while newer technologies like GitHub, PyTorch, and Databricks are emerging as key competencies.
Key Highlights
● Skill Penetration: India has the highest AI skills penetration with 3x more AI skilled talent than other countries; Over the last 7 years, India has witnessed a 14x growth in individuals skilled with AI
● AI Skill Demand: While demand for talent in India is expected to grow ~15%, the market is expected to grow 25-35%, indicating the need to focus on upskilling existing talent as well as breaking the linearity of growth in revenues and of FTEs
● Growth: Tech services firms have begun to actively hire for AI/ML specific jobs: AI leadership hiring increased by 15% while the hiring for AI engineers rose by 70% in the last year
● Required Skill: While ML, Python and SQL continue to dominate current skills requirement in AI; GitHub, PyTorch and Databricks are also beginning to emerge as important skills
While India’s AI market is likely to grow on par with the global market with a skew towards the financial sector as the main spender, the tech sector is also expected to increase spending in India over the next few years.
Report revealed
India as a Global AI Powerhouse
The global AI market, projected to reach $320-380 billion by 2027, mirrors India’s growth trajectory. GenAI is expected to account for about 33% of this market, with India playing a crucial role, especially in the financial, technology, and media sectors. The strategic shift towards AI, cloud, and analytics investments by IT buyers indicates a broader adoption of AI across various industries, heralding a new era of digital transformation.
The global AI market is expected to reach $320-380 billion by 2027. It reflectes the rapid growth similar to India’s trajectory in this field. Approximately 33% of this market value is anticipated to come from Generative AI (GenAI). It is highlighting India’s significant impact, particularly in finance, technology, and media. This trend is supported by a strategic pivot towards investing in AI, cloud computing, and analytics among IT purchasers. Such investments signal a widespread adoption of AI technologies across different sectors. This movement marks the onset of a new era in digital transformation. It also showcasing the increasing reliance on artificial intelligence for future developments.
The AI Software & Services market is already valued at $100 Bn and Global AI market is expected to reach $320-380 Bn by 2027 with GenAI expected to contribute ~33% & Financial expected to be the largest sector.
Indian AI Talent: A Closer Look
Identified as a key technological disruptor, AI/ML’s potential to reshape industries is immense. With financial services leading the charge, India’s tech sector is also poised for increased AI investment, reflecting a nationwide commitment to harnessing AI’s transformative power.
Investment Trends Shaping India’s AI Market
With $83 billion invested globally in AI in 2023, India’s strategic focus on AI innovation is evident. High-profile funding initiatives like Sarvam.ai’s $40 million Series A round highlight India’s ambition to secure its place as a leading player in the global AI landscape.
Investments in AI are also booming across the globe with a sizeable $83 Bn invested in 2023.
Towards an AI-Mature Ecosystem in India
Adopting a comprehensive framework that addresses AI applications for clients, governance, operational models, talent, technology, and data is essential for advancing India’s AI maturity. This strategic approach is key to leveraging AI for innovative, efficient, and strategic growth across the tech ecosystem.
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