A study has revealed that India is trailing in the global race to adopt artificial intelligence (AI), with nearly half of its companies still in the early stages of implementation. The IDC InfoBrief, commissioned by global HR firm Deel, found that 45 per cent of Indian organisations are at an early stage of AI maturity, the highest proportion globally, while only 17 per cent are at an advanced stage.
The report, titled "AI at Work: The Role of AI in the Global Workforce," surveyed over 5,500 business leaders across 22 markets. It highlights that the slow adoption is compounded by a significant reskilling gap, with only 54 per cent of Indian organisations having formal reskilling programmes, compared to a global average of 67 per cent.
Barriers To Adoption And Workforce Impact
The top barriers to AI adoption in India include data privacy and compliance concerns, cited by 46 per cent of firms, integration with legacy systems (45 per cent), and a lack of internal AI expertise (43 per cent). Furthermore, over 53 per cent of Indian companies are not familiar with local AI regulations, and only 16 per cent have formally enforced internal AI usage policies.
AI's influence is prompting a widespread redesign of the workforce. In India, 43 per cent of companies report that job roles are being significantly or fully redesigned, and 70 per cent expect AI to reduce entry-level hiring within the next one to three years. This shift is changing hiring priorities, with 66 per cent of employers now prioritising technical certifications over academic degrees for entry-level positions.
Talent Shortage And Reskilling Challenges
The lag in reskilling is exacerbating a talent shortage. The study found that 63 per cent of Indian organisations struggle to hire qualified AI talent. To attract and retain this scarce talent, 41 per cent of companies are willing to pay up to 25 per cent more in salary, while 36 per cent will offer a premium of 25 to 50 per cent.
However, reskilling efforts face their own hurdles. The primary challenges include limited employee engagement (58 per cent), budget constraints (49 per cent), and a lack of expert trainers (45 per cent). Despite these challenges, 45 per cent of organisations that have not yet started reskilling plan to do so within the next 12 months.
The key takeaways from the report are that Indian corporations are in the early phase of AI integration compared to global peers, the country faces a critical shortage of AI skills and formal reskilling initiatives, and the rapid transformation of the workforce is reducing entry-level roles while increasing demand for technically certified talent. |
