India must upskill fast to keep up with AI jobs, says new report

Further, the report revealed that administrative and support roles, such as data entry, scheduling, and customer service, are at risk considering the rapid advancement in AI-driven automation. According to the report, these roles are disproportionately performed by those from underserved communities, including women, informal workers, and those with low digital literacy. These groups contribute largely in sectors like manufacturing, textiles, and logistics. And, in the absence of focused AI skilling initiatives, these workers risk being left behind in the rapidly evolving job market.

“In countries like India, where a significant portion of the workforce is currently engaged in labor-intensive tasks such as labeling data and training AI systems, there’s a looming question about the future. As these processes become increasingly automated and sophisticated, what opportunities will exist for millions of people whose livelihoods depend on these roles today? Without proactive planning for reskilling and creating pathways into higher-value AI and tech-related jobs, we risk leaving large parts of the population behind in the AI revolution,” said Kelly Forbes, President & Executive Director, AI Asia Pacific Institute, Asia Pacific.

Young and underserved

The report highlights that India has one of the largest populations of young people, yet many of them are either looking for their first job or hoping to upskill for better opportunities. However, there seems to be a disconnect between what is being imparted as skills and what employers are looking for. According to the report, the candidate profiles sought by employers today are dramatically different from those a few years ago. Traditional degrees are no longer the only requisite; today companies are looking for skills like critical thinking, adaptability, and the ability to use AI tools effectively. 

The report also cites a Times of India report stating that in 2024 even students from prestigious engineering colleges in India struggled to find employment. The newspaper report claimed that 10 per cent of 1.5 million engineering graduates were expected to get jobs. This underscores the urgent need to reframe skilling and training to match up to the job demands in an AI-driven economy. 

Apart from students, India is also home to a large number of informal workers, meaning workers without job security, stable income or even access to formal training. The jobs in this sector include packaging workers, delivery staff, textile factory workers, etc. The report warns that AI and automation could impact these sectors hard, especially since most of these jobs involve repetitive manual tasks.  Another major hurdle is digital access, as in numerous rural areas people either don’t have smartphones or access to the internet. In order to have an inclusive AI future, the report recommends bridging these gaps. 

When it comes to women, they make up about 35 per cent of the Indian workforce and are also somewhat over-represented in roles that are at most risk of automation, such as office support and retail services. According to the report, many women also drop out of the workforce owing to family obligations, and the ones re-entering are confronted with the rapidly changing job market. The study claims that AI can help level the playing field, but only if these women are given fair access to reskilling. Further, the report suggests building flexible, contextual skilling programmes that are tailored for women, including mothers rejoining the workforce.

5 ways India can achieve an AI-ready workforce

Along with offering a nuanced view of the current job landscape in India with its challenges and opportunities, the report recommends several urgent steps that help India attain an AI-ready workforce. The steps are as follows:

Offering tailored skilling for different groups: The report suggests that skilling efforts should be designed keeping in mind the diversity of jobseekers, such as recent graduates, informal workers, women, people with low digital literacy, and the elderly. According to the report, each group comes with different needs and challenges. 

Emphasis on practical training: As per the report, 40 per cent of survey respondents across the APAC region want real-world, contextual training over abstract technical expertise. Hence, India’s AI skilling initiatives must focus on practical skills that could directly lead to job-readiness. 

More awareness: When it comes to skilling programmes, only 15 per cent of workers surveyed across Asia-Pacific have participated in any AI skilling initiatives. In India, this number could be lower, signalling the need for awareness campaigns that are needed to encourage participation.

Boost for MSMEs: In India, micro, small and medium (MSMEs) make up over 90 per cent of businesses, and they employ a major chunk of the workforce. However, most of these MSMEs lack the resources to train employees in AI tools. There is a need for support from the government and private sector to make AI adoption possible for these businesses. 

Address gender gaps and digital access: According to the report, without concerted efforts to include women and digitally disadvantaged groups, AI adoption may exacerbate existing inequalities. This makes investments in accessible, multilingual, and gender-sensitive training imperative. 

It needs to be noted that there are bright spots; programmes such as Grow with Google have trained over 60 million people in the APAC region. Similarly, the AI Opportunity Fund, launched in 2024, aims to train over 500,000 workers across the region, including India, through partnerships with NGOs and local education providers. With the youngest and largest workforce in the world, India can either lead the AI revolution or struggle to embrace an AI-ready future. The report states that bridging the gap will need intentional, inclusive action from all. Since the future of work is here, according to the report, India must act now.