India ranks 4th globally in the AI Index (figure 1) with a score of 25.54, placing it behind the US (1st, 70.06) and China (2nd, 40.17). However, a comparative analysis of India's AI strengths and weaknesses (figure 2) reveals that there are still major concerns and problems for her to solve to be able to compete with global AI leaders.
Strengths for India
Weaknesses for India
Conclusion India shows potential, particularly in leveraging its diversity, policy focus, and growing educational base for AI. However, critical gaps in infrastructure and responsible AI practices, along with translating R&D into economic gains, are major hurdles compared to global leaders like the US and China. AI Strategy & Training for Executives The gap between India's AI potential and its current infrastructural/ethical maturity requires astute leadership. The winners will be those who can strategically:
Leading effectively in the age of AI, particularly Generative AI, requires specific strategic understanding. If you would like to equip your executive team with the knowledge to make confident decisions, manage risks, and drive successful AI integration, reach out for custom AI training proposals - [email protected]. Related blogs
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1. Executive Summary: Indian enterprises are at the forefront of artificial intelligence (AI) adoption, demonstrating a greater inclination towards integrating this technology compared to global counterparts 1. Reports indicate that a significant majority of Indian businesses are not only aware of AI but are actively prioritizing its implementation in their strategies for 2025 1. Notably, the adoption of Generative AI (GenAI) within Indian organizations stands at an impressive 94%, positioning India as a global leader in this rapidly evolving field 3. This proactive engagement with AI signifies a strong intent among Indian enterprises to leverage its transformative potential. However, despite this enthusiastic adoption, the journey from planning to successful execution appears to encounter hurdles. The fact that India leads globally in the number of AI projects across various stages but also reports the highest number of stalled or canceled projects suggests a potential impediment in translating AI ambitions into tangible outcomes 1. This bottleneck can be attributed, in part, to a significant gap in the availability of skilled talent capable of navigating the complexities of AI development and deployment. While Indian businesses show a high level of familiarity with AI, a substantial percentage report a lack of access to the necessary talent to fully realize their AI objectives 1. To fully capitalize on the promise of AI, particularly Generative AI, and to mitigate the risks associated with stalled projects, a strategic focus on upskilling the existing workforce is paramount. Indian enterprises are primarily deploying AI-led solutions with an aim to optimize their operations and achieve their strategic goals, including boosting profitability 1. Furthermore, enhancing customer experience and improving decision-making capabilities are key objectives driving AI investments 4. Achieving these business outcomes necessitates a workforce equipped with the specialized skills to effectively leverage AI technologies. Therefore, while India demonstrates a strong initial momentum in AI adoption, the sustained success and realization of its full potential hinges on a concerted effort to bridge the AI skills gap through targeted and comprehensive upskilling initiatives, especially in the domain of Generative AI. 2. The Current Landscape of AI Adoption in Indian Enterprises:
Indian enterprises exhibit a strong inclination towards adopting artificial intelligence (AI), positioning themselves ahead of global trends. A report indicates that 79% of Indian enterprises report awareness of AI, significantly higher than the global average of 59% 1. This heightened awareness translates into action, with India leading globally in the sheer number of AI projects spanning planning, development, and implementation stages 1. This proactive engagement is further underscored by a study revealing that India leads in AI adoption, with 30% of Indian enterprises already optimizing value through its usage, surpassing the global average of 26% 6. Notably, a remarkable 100% of companies in India are actively experimenting with AI, signaling a widespread commitment to exploring its potential 6. This trend is set to continue, as evidenced by findings that 51% of Indian enterprises have confirmed plans to rapidly expand their AI adoption, with an additional 32% intending a more gradual integration 4. The commitment from leadership is also evident, with 98% of Indian business leaders considering AI adoption a top priority for 2025 2. While the initial steps in AI adoption are widespread, the fact that only 30% of Indian companies report optimizing value from AI 6 suggests that many organizations are still in the nascent stages of realizing its full benefits, potentially due to challenges in scaling beyond initial experimentation or a lack of the necessary expertise to drive meaningful impact. Several key factors are propelling AI adoption within Indian enterprises. A significant 56% of these organizations prioritize operational optimization when deploying AI-led solutions, exceeding the global average 1. Moreover, 57% of executives in India view AI as essential for achieving their strategic goals and boosting profitability 1. Beyond internal efficiencies, enhancing customer experience and improving decision-making capabilities are identified as the top three business objectives driving AI investments 4. This focus on tangible business outcomes is further supported by a survey where 78% of respondents indicated their intention to invest in AI and machine learning (ML) to improve customer experience and engagement 7. Additionally, 72% aim to leverage AI and ML for discovering useful insights to improve decision-making, and 74% plan to use these technologies for innovation or improving products and services 7. The consistent emphasis on customer experience as a primary driver suggests a strategic orientation towards using AI to better understand and serve their clientele, which in turn implies a growing need for AI skills related to customer interaction and data analysis. AI adoption in India is not confined to a single sector but is gaining momentum across a diverse range of industries. Sectors such as healthcare, financial services, manufacturing, automotive, transportation, telecom, and aviation are witnessing an acceleration in AI integration 4. Furthermore, the fintech, software, and banking industries are highlighted as rapidly utilizing AI in their operations 6. This broad-based adoption indicates a widespread recognition of AI's transformative potential in addressing sector-specific challenges and driving innovation across the Indian economy. The inclusion of sectors like healthcare and transportation points to the application of AI in solving critical real-world problems, suggesting a demand for AI professionals who possess not only core AI skills but also domain-specific knowledge within these industries. In summary, Indian enterprises are exhibiting a strong and widespread commitment to AI adoption, surpassing global averages in awareness, experimentation, and the number of projects initiated. This adoption is primarily driven by the pursuit of operational efficiencies, enhanced customer experiences, and improved decision-making, with investments spanning across various key sectors of the Indian economy. However, the disparity between adoption rates and the realization of optimal value underscores the potential need for a skilled workforce to effectively translate AI investments into tangible business results. 3. Deep Dive into Generative AI Adoption: The adoption of Generative AI (GenAI) is experiencing a significant surge within Indian enterprises, positioning the nation as a frontrunner in this cutting-edge technology. A notable finding indicates that over 74% of executives in Indian organizations consider Generative AI as one of their critical business imperatives, highlighting its strategic importance for future investments 4. This prioritization is reflected in the remarkable statistic that 94% of Indian enterprises are already utilizing GenAI in at least one function, marking the highest adoption rate across 19 countries surveyed 3. Further evidence of this strong uptake comes from a survey revealing that 36% of Indian enterprises have already allocated budgets and commenced investing in GenAI, while an additional 24% are actively experimenting with its potential applications 8. This combination of active exploration, budgetary commitment, and widespread current usage underscores a robust and enthusiastic embrace of Generative AI within the Indian business landscape. The convergence of high current usage and active exploration for future investments suggests that Indian enterprises are not merely dabbling with GenAI but are strategically integrating it into their operational frameworks and long-term planning. Accompanying this rapid adoption is a substantial financial commitment towards AI technologies, including Generative AI. While a survey focused on overall AI and ML investments indicates that a significant 37% of major Indian businesses (with turnovers over Rs 5,000 crore) planned to increase their budgets by 25-30% or more in 2024 7, the trend of increasing investment is likely to persist into 2025 given the growing recognition of AI's value. Furthermore, projections estimate that venture capital and private equity investments in AI technologies within India are expected to reach $16 billion by 2025, with a considerable portion of this funding directed towards the burgeoning field of Generative AI 9. This significant influx of capital into the Indian AI ecosystem, particularly for GenAI, points towards a thriving environment for innovation and the development of advanced AI solutions. This robust investment landscape is likely to further accelerate the adoption of GenAI by providing enterprises with access to a wider array of sophisticated tools and specialized expertise. The applications of Generative AI within Indian enterprises are diverse and continue to expand across various sectors. Beyond the general exploration of GenAI and Agentic AI as popular technologies for future investment 4, specific use cases are emerging. For instance, IndiaMART, a B2B marketplace, successfully leveraged AWS's GenAI platform to translate and transliterate over five million product listings into Hindi, significantly enhancing their reach in non-English speaking regions 10. Apollo Tyres also utilized AWS's AI to achieve a 9% improvement in operational efficiency within their heavy engineering processes 10. Across industries, customer service, operations, and sales and marketing functions are leading the way in AI adoption, with AI-powered chat, voice, and regional language tools already making a tangible impact 8. Looking ahead, Generative AI holds the potential to revolutionize various aspects of business, including generating comprehensive scenario analyses for CEOs, identifying hidden market trends, simulating complex business strategies, and providing real-time competitive intelligence 9. Major Indian IT companies like TCS are integrating GenAI into strategic planning and project management, while Infosys is developing proprietary frameworks to enhance customer experience and internal operational efficiency 9. The transformative potential extends to sectors like healthcare (faster research analysis, improved drug adherence), manufacturing (predictive maintenance, yield optimization), retail (personalized offerings, dynamic pricing), banking (personalized experiences, risk analytics), insurance (risk assessment, claims processing), and education (student enablement, personalized learning) 11. The focus on regional language tools, exemplified by IndiaMART's use case and the government-led Bhashini project aimed at creating open-source Indic language datasets 8, highlights a unique and critical application of GenAI in addressing the linguistic diversity of India. This underscores a growing demand for expertise in natural language processing for Indian languages within the context of Generative AI. In conclusion, Generative AI adoption is experiencing remarkable growth in India, characterized by high current usage, substantial planned investments, and a wide range of applications across diverse sectors. The strategic importance placed on GenAI by business leaders, coupled with the focus on addressing India's linguistic diversity, positions the country as a significant player in the global GenAI landscape. 4. The Demand for AI Skills in the Enterprise: The rapid proliferation of artificial intelligence within Indian enterprises has ignited a significant demand for a diverse range of specialized skills. Among the specific technical skills that are highly sought after is general "AI expertise" 2. This broad category encompasses a deep understanding of AI principles, methodologies, and their practical application within a business context. Beyond this overarching expertise, technical proficiency in areas like software development is also in high demand, as AI solutions often require seamless integration with existing software infrastructure 2. More granularly, specific roles such as AI Specialists, who focus on designing, testing, and optimizing AI models for real-world applications, are increasingly essential 17. Similarly, Machine Learning Engineers, responsible for building and optimizing the systems that process vast amounts of data to train AI models, are experiencing heightened demand 17. The role of the Data Scientist, tasked with analyzing and interpreting complex data to inform organizational decision-making, remains critical in the AI-driven landscape 17. Furthermore, AI Research Scientists, who pioneer new AI models and techniques, are vital for driving innovation and pushing the boundaries of AI capabilities 17. The demand for Artificial Intelligence and Machine Learning Engineers is consistently highlighted as a top technological job, requiring proficiency in programming languages like Python, deep learning frameworks such as TensorFlow and PyTorch, and Natural Language Processing (NLP) techniques 18. Cloud Computing Specialists are also in high demand, as the deployment and management of AI solutions often rely on cloud-based platforms 18. Essential skills within the AI/ML domain further include a strong foundation in machine learning basics and the ability to effectively interpret and display complex data through data visualization techniques 19. A comprehensive understanding of machine learning algorithms, deep learning frameworks, neural networks, Natural Language Processing (including pre-trained models like BERT and GPT), Computer Vision, and the principles of Data Science and Big Data (including tools like Hadoop and Spark) are all crucial skill areas in the current AI job market 20. Notably, Python programming is considered a fundamental skill, with a vast majority of AI roles in India requiring proficiency in this language 21. While technical expertise forms the bedrock of AI capabilities, the importance of complementary soft skills is increasingly recognized within Indian enterprises. Along with technical proficiencies, soft skills such as communication and problem-solving are in high demand, as AI projects often involve cross-functional teams and require the ability to articulate complex technical concepts to non-technical stakeholders 2. In fact, learning and development professionals in India overwhelmingly agree that soft skills are becoming just as critical as technical expertise in the AI domain 2. Non-technical abilities like communication, problem-solving, and creativity are essential for workplace success in the age of AI 22. Additionally, critical thinking and leadership skills are also highly valued 22. Within the specific context of AI, the ability to translate complex data into actionable insights and communicate these findings effectively through data storytelling is considered a top AI skill 21. The emphasis on these soft skills underscores the collaborative and communicative nature of successful AI implementation, where bridging the gap between technical teams and business objectives is paramount. As Generative AI adoption continues its rapid ascent within Indian enterprises, the demand for skills specifically related to this technology is also on the rise. While not always explicitly categorized as "Generative AI skills," expertise in Natural Language Processing (NLP) is inherently crucial, given the text-generative capabilities of many GenAI models 18. Similarly, familiarity with and the ability to work effectively with large language models (LLMs) are becoming increasingly important 20. Beyond the foundational understanding of these models, practical skills such as prompt engineering – the art of crafting effective prompts to elicit desired outputs from GenAI models – are gaining significance. Furthermore, the ability to critically evaluate the outputs of GenAI models, understanding their nuances and potential biases, is essential for responsible and effective application. As Generative AI continues to evolve at a rapid pace, a commitment to continuous learning and upskilling will be particularly vital for professionals in this domain to maintain their relevance and effectiveness. In summary, the demand for AI skills in Indian enterprises encompasses a broad spectrum of technical expertise, including proficiency in programming languages like Python, deep learning frameworks, NLP, and data science. Alongside these technical skills, soft skills such as communication, problem-solving, and critical thinking are increasingly valued. Specifically within the realm of Generative AI, expertise in NLP, working with large language models, prompt engineering, and a commitment to continuous learning are becoming essential for professionals seeking to contribute to this rapidly advancing field. 5. The AI Skills Gap: Challenges and Implications: The ambitious pursuit of artificial intelligence by Indian enterprises is facing a significant headwind in the form of a growing skills gap. A considerable 31% of Indian businesses report a lack of access to the necessary talent to develop AI solutions 1. This shortage of skilled AI professionals is consistently identified as one of the primary challenges hindering the widespread adoption of AI within the country 4. Despite the strong drive for AI integration across industries, finding candidates with the right mix of AI and related skills remains a substantial obstacle 2. In fact, over half of HR professionals in India indicate that only half or fewer of the job applications they receive meet all the required qualifications for AI-related roles 2. This situation is further compounded by the finding that only 42.6% of Indian graduates are deemed employable, highlighting a widening chasm between the skills possessed by the graduating workforce and the demands of employers in emerging fields like AI and data analytics 22. The scale of this skills deficit is projected to escalate, with warnings that India could face a shortfall of over a million skilled AI professionals by 2027 23. Some estimates suggest that India will need as many as 1.5 million AI professionals by 2025 just to meet its digital economy goals 21. The consistent projection of a million-plus shortfall by multiple independent reports underscores the critical nature and urgency of addressing this AI skills gap, posing a substantial threat to India's aspirations in the global AI arena. Several interconnected factors contribute to this widening AI skills gap in India. Deficiencies within the education system are a key contributor, with a noted focus on theoretical knowledge often overshadowing the development of practical, industry-relevant skills needed for AI implementation 22. The rapid pace of technological advancement in the field of AI also necessitates continuous upskilling and reskilling of the workforce, a challenge that many individuals and organizations are still grappling with 22. Furthermore, there is a perceived lack of readily available talent possessing the specific skills required for the effective deployment and scaling of AI solutions within enterprise environments 1. While organizations are actively engaging in both hiring new AI professionals and retraining their existing employees to acquire AI-related skills 26, the sheer magnitude of the projected shortfall suggests that current efforts may not be sufficient to meet the rapidly growing demand. The difficulty reported by a significant percentage of Indian businesses in rolling out developed AI solutions 1 could also be indicative of a gap in the practical implementation skills needed to translate AI models from development to real-world application. The implications of this significant AI skills gap for Indian enterprises and the nation's AI ambitions are considerable. Many organizations are already experiencing challenges in transitioning their AI projects from the planning stages to successful execution, directly attributable to the lack of necessary skills within their teams 1. The high number of stalled or canceled AI projects in India, despite the country leading in project initiation, could be a direct consequence of insufficient skilled personnel to navigate the complexities of AI development and deployment 1. The widening skills gap poses a clear obstruction to the broader adoption of AI across various industries, potentially slowing down the pace of innovation and hindering the realization of the economic benefits that AI promises 23. Perhaps more significantly, the projected shortfall of over a million skilled AI professionals by 2027 jeopardizes India's unique opportunity to position itself as a global hub for AI talent, potentially impacting its long-term competitiveness in the global technology landscape 23. The inability to cultivate a sufficiently skilled AI workforce could have a ripple effect on the national economy, limiting India's capacity to fully capitalize on the transformative power of artificial intelligence. In conclusion, India faces a critical and growing AI skills gap, with projections indicating a shortfall of over a million professionals within the next few years. This deficit, stemming from educational limitations and the rapid evolution of AI, presents a major obstacle to the successful adoption and scaling of AI within Indian enterprises, potentially impeding their growth and undermining India's aspirations to become a global leader in the field of artificial intelligence. 6. Why Upskilling in Generative AI is Crucial for Enterprise Success: In the rapidly evolving technological landscape, upskilling employees in Generative AI is no longer an optional initiative but a fundamental necessity for Indian enterprises aiming for sustained success and competitive advantage. The potential of GenAI to drive significant productivity gains across various sectors is well-documented. Reports suggest that GenAI has the capacity to boost overall productivity, impacting millions of workers and redefining the future of work 8. Specific projections indicate substantial productivity increases in key areas such as call center management, software development, content creation, customer service, and sales and marketing 15. Real-world examples further underscore this point, with companies like Apollo Tyres achieving notable productivity improvements through the strategic application of AI 10. Estimates suggest that GenAI could unlock a substantial amount of productive capacity within the Indian economy, highlighting its potential for widespread efficiency enhancements 27. This ability to automate routine tasks, augment human capabilities with advanced analytical tools, and streamline workflows empowers employees to accomplish more efficiently, leading to tangible improvements in operational efficiency and overall productivity 11. The projected percentage increases in productivity across diverse roles provide compelling quantitative evidence for the value of investing in GenAI upskilling initiatives. Beyond enhancing current operations, a workforce proficient in Generative AI is a catalyst for fostering innovation and the development of entirely new business models. As AI technologies become more accessible and cost-effective, their transformative impact is expected to redefine industries and spur innovation across the board 4. Leading Indian enterprises are already moving beyond simply using AI for productivity gains and are actively exploring its potential to reshape their core business models and invent novel approaches to value creation 6. GenAI's capabilities in areas like personalized offerings in retail and accelerated drug discovery in healthcare hint at the potential for creating entirely new products and services 11. Moreover, GenAI can unlock new revenue streams for businesses by enabling them to offer innovative solutions and cater to previously unmet market needs 13. The ability of GenAI to assist in innovative product design further underscores its role in driving creative output and market differentiation 14. This strategic shift from focusing solely on optimizing existing processes to leveraging AI for the creation of new value streams signifies a deeper understanding of its transformative potential, necessitating a workforce equipped with the skills to envision and implement these innovative applications. In an increasingly digital and AI-driven marketplace, maintaining a competitive advantage hinges on the ability to adopt and effectively utilize advanced technologies like Generative AI. Businesses that fail to upskill their workforce in this critical area risk being outpaced by competitors who are leveraging GenAI for innovation, efficiency, and enhanced customer engagement 5. The growing interest among enterprises in exploring advanced technologies like GenAI underscores their awareness of its potential to provide a crucial competitive edge 5. While outsourcing AI solutions can offer a temporary fix, cultivating in-house expertise through comprehensive upskilling programs provides a more sustainable and strategically advantageous position in the long run 1. Investing in the development of GenAI skills within the organization not only enhances its current capabilities but also future-proofs its workforce, ensuring it remains agile and competitive in the face of rapid technological advancements. Furthermore, offering employees the opportunity to acquire skills in cutting-edge technologies like Generative AI can significantly enhance an enterprise's ability to attract and retain top talent. Professionals are increasingly seeking roles that provide opportunities for growth and development in future-proof skill areas. By investing in GenAI upskilling initiatives, companies can position themselves as innovative and forward-thinking employers, thereby bolstering their reputation and making them more desirable places to work. This can lead to a more engaged and skilled workforce, further contributing to the enterprise's overall success. In conclusion, upskilling in Generative AI is not merely beneficial but absolutely essential for Indian enterprises to thrive in the current and future business environment. It serves as a powerful engine for enhanced productivity and efficiency, fosters a culture of innovation and enables the development of new business models, is crucial for maintaining a strong competitive advantage, and plays a vital role in attracting and retaining top-tier talent, collectively paving the way for long-term organizational success. 7. The Business Case for Corporate Generative AI Training: The decision for Indian enterprises to invest in corporate Generative AI training is underpinned by a compelling business case that considers both the potential gains and the significant costs associated with inaction. One of the primary costs of not upskilling in GenAI is the multitude of missed opportunities. Enterprises that fail to embrace AI risk falling behind their competitors who are leveraging it for innovation and efficiency, leading to a loss of competitive edge and missed potential for growth and improved performance 5. The failure to address the skills shortage can transform what could be a game-changing AI opportunity into a significant setback for the organization 1. Furthermore, a lack of focus on upskilling could hinder India's overall progress in becoming a global AI talent hub, with broader negative consequences for the national economy 23. The inability to adopt and effectively utilize AI technologies due to a lack of skilled personnel translates directly into missed opportunities for innovation, market expansion, and revenue generation. Beyond lost potential, the absence of a skilled workforce in Generative AI can lead to increased operational inefficiencies and costs. Companies that do not adopt AI may experience lower productivity compared to those that do 5. Moreover, organizations struggling with skills gaps often face difficulties in moving their AI projects from planning to execution, potentially resulting in wasted investments and prolonged project timelines 1. The high number of stalled AI projects in India could be indicative of such inefficiencies stemming from a lack of skilled professionals to drive them to completion 1. The difficulty in rolling out developed AI solutions due to a lack of implementation skills further highlights the inefficiencies associated with an unequipped workforce 1. Relying on external consultants to fill the skills gap can also significantly increase operational costs, making in-house upskilling a more cost-effective long-term strategy. In a market where AI adoption, particularly GenAI, is rapidly becoming a standard practice, enterprises that do not prioritize upskilling in this domain face the significant risk of falling behind their competitors 5. Organizations that are agile and innovative in their adoption of GenAI will likely gain a considerable advantage in terms of efficiency, product development, and customer engagement, leaving those who lag behind at a distinct disadvantage. Furthermore, a lack of skilled professionals can exacerbate the inherent challenges associated with implementing and scaling AI solutions. These challenges include navigating ethical concerns, mitigating bias, ensuring legal and regulatory compliance, and addressing data privacy and governance issues 4. A well-trained workforce is crucial for effectively addressing these complexities and ensuring the responsible and successful deployment of AI technologies. The difficulties faced by Indian businesses in rolling out developed AI solutions 1 and the struggles in transitioning from planning to execution due to skills gaps 1 underscore the importance of having a skilled team to manage the entire lifecycle of AI projects. In conclusion, the business case for corporate Generative AI training is compelling. The cost of neglecting this crucial area includes not only the direct expenses of missed opportunities and operational inefficiencies but also the significant risk of falling behind competitors and struggling with the complexities of AI implementation. By proactively investing in upskilling their workforce in GenAI, Indian enterprises can mitigate these risks, capitalize on the numerous benefits that GenAI offers, and secure a stronger position in the increasingly AI-driven business landscape. 8. Case Studies of Successful AI Implementation in Indian Enterprises: Several Indian enterprises have already demonstrated the transformative power of artificial intelligence, including Generative AI, by strategically implementing it across various aspects of their operations. IndiaMART, a prominent B2B marketplace, serves as a compelling example of successful GenAI adoption. By leveraging AWS's Generative AI platform, IndiaMART was able to translate and transliterate over five million product listings into Hindi 10. This initiative significantly expanded their reach to customers in Tier II cities and beyond, where English is not the primary language, highlighting the potential of GenAI to overcome language barriers and tap into new markets. Apollo Tyres is another Indian company that has effectively utilized AI to enhance its operational efficiency. By implementing AWS's AI solutions in its heavy engineering division, Apollo Tyres achieved a notable 9% improvement in productivity 10. This demonstrates the tangible impact of AI in optimizing industrial processes and driving significant gains in output. The Mahindra Group, a large Indian multinational conglomerate, has also embraced AI to gain valuable business insights. While the specific details of their implementation are not elaborated, their use of AI to uncover hidden insights underscores the technology's potential for advanced analytics and strategic decision-making within complex organizations 3. Leading Indian IT services companies, Tata Consultancy Services (TCS) and Infosys, are at the forefront of integrating Generative AI into their strategic frameworks. TCS has incorporated GenAI into its strategic planning processes to optimize global project management and enhance client engagement strategies 9. Similarly, Infosys has developed its own proprietary Generative AI frameworks aimed at improving customer experience and boosting internal operational efficiency 9. These examples showcase the strategic-level adoption of GenAI by major players in the Indian technology sector. Further examples include Reliance Jio, which utilizes AI to optimize its 5G networks, resulting in reduced downtime and significant cost savings, and Tata Motors, which has implemented AI-powered quality control measures in its manufacturing processes, leading to a reduction in defects 21. These instances illustrate the diverse applications of AI in optimizing technology infrastructure and enhancing product quality within key Indian industries. These case studies collectively demonstrate the diverse and impactful ways in which AI, including Generative AI, is being successfully implemented by Indian enterprises across various sectors. They provide concrete evidence of the tangible benefits, such as expanded market reach, improved operational efficiency, enhanced customer experience, and strategic insights, that can be realized through the strategic adoption and effective utilization of AI technologies, thereby reinforcing the importance of investing in the necessary AI skills. 9. The Role of Corporate Training in Bridging the Generative AI Skills Gap: Corporate training programs are indispensable for effectively addressing the growing Generative AI skills gap within Indian enterprises. Given the significant shortage of skilled AI professionals 4, targeted training initiatives are crucial for equipping the existing workforce with the necessary competencies to navigate the complexities of GenAI development, implementation, and management 2. By investing in upskilling programs, companies can directly tackle the talent deficit and build a strong internal foundation of GenAI expertise. The emphasis on continuous upskilling is particularly vital in the rapidly evolving field of AI, ensuring that employees remain abreast of the latest advancements and best practices 2. Effective corporate training plays a pivotal role in facilitating the successful implementation and scaling of AI solutions within organizations 1. Well-designed programs provide employees with the practical skills and in-depth knowledge required to translate AI strategies into tangible outcomes. This includes not only the technical proficiency to work with GenAI models but also a comprehensive understanding of their business applications and the strategic considerations for their deployment. Training can bridge the gap between AI planning and actual execution, empowering employees to contribute meaningfully to AI initiatives 1. Furthermore, it enables employees to better understand customer needs, enhance engagement and productivity, and make data-driven decisions, all of which are crucial for successful AI adoption 28. As Generative AI becomes more integrated into business processes, addressing the ethical concerns and potential for bias associated with this technology is paramount. Corporate training provides a crucial platform for educating employees about responsible AI development and deployment practices 4. By raising awareness about ethical considerations, bias detection and mitigation techniques, and data privacy principles, training programs can help build trust in AI systems and ensure their ethical and equitable use within the enterprise. Investing in corporate Generative AI training is also a strategic move towards building a future-ready workforce 2. As AI continues to permeate various aspects of business operations, employees equipped with GenAI skills will be better positioned to adapt to the changing demands of the AI-driven economy. Customized learning platforms offered through corporate training can foster both broad and specialized skills, supporting the professional growth and long-term employability of the workforce 28. Government initiatives like iGOT Karmayogi further underscore the national importance of upskilling the workforce for a digital future powered by technologies like AI 16. In conclusion, corporate training is an indispensable element in bridging the Generative AI skills gap in India. It directly addresses the shortage of skilled professionals, facilitates the successful implementation and scaling of AI solutions, plays a critical role in mitigating ethical risks and biases, and is essential for building a workforce that is prepared for the future of work in an AI-driven world. 10. Conclusion and Recommendations: The analysis of the current landscape reveals that Indian enterprises are at the forefront of AI and particularly Generative AI adoption globally. This proactive engagement is driven by the pursuit of operational efficiencies, enhanced customer experiences, and improved decision-making across a diverse range of industries. However, a significant and growing AI skills gap, especially in the specialized area of Generative AI, poses a considerable challenge to realizing the full potential of these technological investments. Upskilling the existing workforce in Generative AI is not merely beneficial but crucial for driving enhanced productivity, fostering innovation, maintaining a competitive advantage in the rapidly evolving market, and attracting and retaining top talent. The business case for corporate Generative AI training is compelling, highlighting the substantial costs of missed opportunities, increased operational inefficiencies, the risk of falling behind competitors, and challenges in effectively implementing and scaling AI solutions if the skills gap is not addressed. Successful case studies from Indian enterprises like IndiaMART, Apollo Tyres, TCS, and Infosys demonstrate the tangible benefits that can be achieved through strategic AI implementation, further underscoring the value of investing in the necessary skills. Corporate training emerges as a fundamental pillar in bridging the Generative AI skills gap, not only by addressing the shortage of skilled professionals but also by facilitating successful AI implementation, mitigating ethical risks, and building a future-ready workforce. Based on these findings, the following recommendations are proposed for Indian enterprises:
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AI adoption high on agenda for Indian enterprises: AWS, https://yourstory.com/enterprise-story/2025/02/ai-adoption-aws-agenda-for-indian-enterprises 11. Generative AI: Strengths, Opportunities and Future Potential - IndiaAI, https://indiaai.gov.in/article/generative-ai-strengths-opportunities-and-future-potential 12. 7 Ways Generative AI Will Steer the Indian Market in 2024 - Olibr, https://olibr.com/blog/7-ways-generative-ai-will-steer-the-indian-market/ 13. "Is Gen AI the Key to Economic Growth in India?" - Global Governance Initiative, https://www.councilonsustainabledevelopment.org/post/is-gen-ai-the-key-to-economic-growth-in-india 14. Generative AI Will Redefine Business Operations – Generative AI Use Cases - iTech India, https://itechindia.co/us/blog/generative-ai-and-future-of-business-generative-ai-usecases/ 15. AI adoption in India may impact 38 million jobs: report - CoinGeek, https://coingeek.com/ai-adoption-in-india-may-impact-38-million-jobs-report/ 16. India's path to AI autonomy - Atlantic Council, https://www.atlanticcouncil.org/in-depth-research-reports/issue-brief/indias-path-to-ai-autonomy/ 17. 5 in-demand jobs requiring AI skills - India Today, https://www.indiatoday.in/education-today/featurephilia/story/5-in-demand-jobs-requiring-ai-skills-2607282-2024-09-27 18. The Top 5 In-Demand Technology Jobs in India, https://acarasolutions.in/blog/the-top-5-in-demand-technology-jobs-in-india/ 19. Top 10 Essential Tech Skills India Employers Seek in 2025 - Nucamp, https://www.nucamp.co/blog/coding-bootcamp-india-ind-top-10-essential-tech-skills-india-employers-seek-in-2025 20. Top Most In-Demand Artificial Intelligence AI Skills In 2025 - EC-Council University, https://www.eccu.edu/blog/what-are-the-most-in-demand-skills-in-artificial-intelligence-in-2025/ 21. AI Talent Development in India & Middle East - Cognitive Today :The New World of Machine Learning and Artificial Intelligence, https://www.cognitivetoday.com/2025/03/ai-talent-development-in-india-middle-east/ 22. India faces growing job crisis: Just 42.6% of graduates are employable - Business Standard, https://www.business-standard.com/industry/news/india-job-market-graduate-skill-gap-ai-automation-employability-2025-125021800437_1.html 23. India to face AI talent gap, shortfall of more than a million workers by 2027: Report, https://timesofindia.indiatimes.com/business/india-business/india-to-face-ai-talent-gap-shortfall-of-more-than-a-million-workers-by-2027-report/articleshow/118841853.cms 24. Massive AI talent gap looms in India; report predicts shortfall of over a million workers by 2027 - HR News, https://hr.economictimes.indiatimes.com/news/trends/massive-ai-talent-gap-looms-in-india-report-predicts-shortfall-of-over-a-million-workers-by-2027/118845015 25. India may face an AI talent shortfall of over 1 million by 2027: Report - Business Standard, https://www.business-standard.com/industry/news/india-may-face-an-ai-talent-shortfall-of-over-1-million-by-2027-report-125031000484_1.html 26. The State of AI in 2025: Global survey - McKinsey & Company, https://www.mckinsey.com/capabilities/quantumblack/our-insights/the-state-of-ai 27. The Economic Impact of Generative AI: - Access Partnership, https://accesspartnership.com/wp-content/uploads/2023/06/The-Economic-Impact-of-Generative-AI-The-Future-of-Work-in-the-India.pdf 28. Role of AI in Shaping Corporate Learning & Development 2025 - Disprz, https://disprz.ai/blog/ai-in-corporate-training 29. Launching a High-Accuracy Chatbot Using Generative AI Solutions on AWS with Megamedia, https://aws.amazon.com/solutions/case-studies/megamedia-case-study/ 30. The Role of AI in Corporate Training: 2025 Guide - Edstellar, https://www.edstellar.com/blog/ai-in-corporate-training 31. AI Adoption in Organizations: Unique Considerations for Change Leaders - wendy hirsch, https://wendyhirsch.com/blog/ai-adoption-challenges-for-organizations 32. Bridging the Gap in the Adoption of Trustworthy AI in Indian Healthcare: Challenges and Opportunities - MDPI, https://www.mdpi.com/2673-2688/6/1/10 The Unfortunate Reality of India’s AI efforts - #2 𝐢𝐧 𝐓𝐚𝐥𝐞𝐧𝐭 𝐛𝐮𝐭 𝐨𝐧𝐥𝐲 #68 𝐢𝐧 𝐢𝐧𝐟𝐫𝐚𝐬𝐭𝐫𝐮𝐜𝐭𝐮𝐫𝐞.
👉 While we should rightly celebrate our immense AI talent pool, we will undoubtedly fail to hold on to them if we do not invest in providing the appropriate infrastructure, operating environment, commercial ecosystem and a conducive culture for their professional growth in India. 👉 While US & China are the undisputed leaders in national-level AI infrastructure, it is perhaps not surprising to note that Singapore ranks #3 in AI infrastructure (and #6 in AI Talent). With a sustained long-term strategy and focus on developing its ‘people’ as their only natural resource, Singapore has consistently pioneered and led the way in harnessing its limited human resources to support its industry, society and economy. 👉 We can take a page out of Singapore’s AI playbook (e.g. AI Singapore) to scale our own AI infrastructure, R&D, commercial and government strategies and support our world-class talent in performing cutting-edge AI R&D in India. 👉 IndiaAI and other government organisations as well as private corporations, therefore, have an enormous challenge at their hands to develop India's AI capabilities at a global scale (more to come on this topic). Source of national AI rankings: The Global AI Index, 2024 What is India’s greatest asset in the global AI ecosystem? 𝐓𝐚𝐥𝐞𝐧𝐭
𝐈𝐧𝐝𝐢𝐚 𝐫𝐚𝐧𝐤𝐬 #2 𝐢𝐧 𝐭𝐞𝐫𝐦𝐬 𝐨𝐟 𝐀𝐈 𝐓𝐚𝐥𝐞𝐧𝐭, 𝐨𝐧𝐥𝐲 𝐛𝐞𝐡𝐢𝐧𝐝 𝐭𝐡𝐞 𝐔𝐒𝐀, while being ranked #10 overall (The Global AI Index, 2024). Let’s dive deeper - 1️⃣ Global optimism in India’s Talent “𝘐𝘯𝘥𝘪𝘢 𝘩𝘢𝘴 𝘢𝘭𝘭 𝘵𝘩𝘦 𝘪𝘯𝘨𝘳𝘦𝘥𝘪𝘦𝘯𝘵𝘴 𝘵𝘰 𝘭𝘦𝘢𝘥 𝘵𝘩𝘦 𝘈𝘐 𝘳𝘦𝘷𝘰𝘭𝘶𝘵𝘪𝘰𝘯” - Jensen Huang, NVIDIA - “𝘐𝘯𝘥𝘪𝘢 𝘤𝘢𝘯 𝘭𝘦𝘢𝘥 𝘵𝘩𝘦 𝘈𝘐 𝘧𝘳𝘰𝘯𝘵𝘪𝘦𝘳” - Sundar Pichai, Google - “𝘐𝘯𝘥𝘪𝘢 𝘩𝘢𝘴 𝘴𝘰 𝘮𝘢𝘯𝘺 𝘵𝘢𝘭𝘦𝘯𝘵𝘦𝘥 𝘱𝘦𝘰𝘱𝘭𝘦, 𝘴𝘰 𝘮𝘢𝘯𝘺 𝘨𝘳𝘦𝘢𝘵 𝘤𝘰𝘮𝘱𝘢𝘯𝘪𝘦𝘴—𝘪𝘵 𝘩𝘢𝘴 𝘵𝘩𝘦 𝘳𝘦𝘴𝘰𝘶𝘳𝘤𝘦𝘴 𝘵𝘰 𝘣𝘰𝘵𝘩 𝘵𝘳𝘢𝘪𝘯 𝘧𝘰𝘶𝘯𝘥𝘢𝘵𝘪𝘰𝘯 𝘮𝘰𝘥𝘦𝘭𝘴 𝘢𝘯𝘥 𝘣𝘶𝘪𝘭𝘥 𝘢𝘱𝘱𝘭𝘪𝘤𝘢𝘵𝘪𝘰𝘯𝘴” - Andrew Ng, DeepLearning.ai India's young, capable and energetic workforce, gives us an edge that is partly due to our sheer demographic weight but also thanks to our strong network of higher education STEM institutions, and our global position as an IT outsourcing powerhouse. 2️⃣ AI Developers vs. Scientists We are particularly strong in our AI developer talent who are proficient in building generativeAI and LLM powered applications. However, in terms of highly specialised AI research scientists, India ranks only 24 (The Global AI Index, 2024). 3️⃣ AI Research Talent Churn Our AI Research Talent in particular is prone to churn. Due to the lack of a supporting infrastructure, R&D culture, commercial ecosystem, mentorship etc., a significant proportion of our talent opts out of AI research by: - Moving to industry to work on AI applications - Migrating to USA etc. for better AI research opportunities 4️⃣ Growing and Retaining India’s AI Talent In order to maintain our competitive edge in AI Talent, we need to continue investing in skill development. We not only need AI-native talent who can conduct research and build AI applications, but we also need our non-technical workforce to be adept in AI skills and tools that are critical for driving efficiency and productivity at work. This will not only result in economic gains for the country but also pave the way for future success - “𝘕𝘦𝘦𝘥 𝘵𝘰 𝘴𝘬𝘪𝘭𝘭, 𝘳𝘦-𝘴𝘬𝘪𝘭𝘭 𝘱𝘦𝘰𝘱𝘭𝘦 𝘧𝘰𝘳 𝘈𝘐-𝘥𝘳𝘪𝘷𝘦𝘯 𝘧𝘶𝘵𝘶𝘳𝘦” - 𝐏𝐌 𝐌𝐨𝐝𝐢 at AI Action Summit, Paris 2025 5️⃣ Conclusions I am personally optimistic about India’s AI potential only because of her Talent. My belief is substantiated by studies which show that India ranks 1st globally in AI skill penetration (Stanford AI Index 2024). Additionally, India also leads in AI skill penetration for Women with a penetration rate of 1.7. If we take the right steps in supporting and nurturing our talent and provide them with the necessary resources, infrastructure, ecosystem, mentorship, and foster a culture of meritocracy and research, we will not only be regarded as leaders in AI Talent but also as global leaders in AI implementation, innovation, and R&D. What is India’s strength in AI? 𝗕𝘂𝗶𝗹𝗱𝗶𝗻𝗴 𝗔𝗽𝗽𝗹𝗶𝗰𝗮𝘁𝗶𝗼𝗻𝘀
India may be lagging behind other countries in terms of fundamental AI research but it punches above its weight when it comes to building AI applications - 1️⃣ Greater adoption of Application models vs. Foundational LLMs The number of downloads of models (on Hugging Face) focused on Indic use cases in the last month from today show up to a staggering ~90X greater adoption of smaller application models (largely developed by AI4Bhārat) vs. foundational LLMs (based on Sarvam's Sarvam-1 and Krutrim's Krutrim-2-instruct). These are the use cases for each of the Application models: - indictrans2-indic-en-1B: translation from 22 Indian languages to English - indic-bert: language model and embeddings for 12 Indian languages - indicBERtv2-MLM-only: multilingual language model for 23 languages - indictrans2-en-indic-1B: translation from English to 22 Indian languages - indic-sentence-bert-nli: sentence similarity across 10 Indian languages 👉 The application models are typically “small” models ranging from ~300M to ~1B parameters in size vs. the foundational LLMs that are 2 to 12B parameters in size. This also indicates that for solving India-specific use cases, we do not necessarily need “large” models; and the development of small, fine-tuned models on top of leading open-source LLMs from global companies is a good strategy to solve for niche domestic use cases. 2️⃣ India publishes ~2x more at Application vs. Theoretical AI Conferences Of the top 10 AI conferences, India publishes ~2 times more papers in conferences like AAAI and EMNLP that are more application focused vs. the more theory focused conferences like NeurIPS, ICML and ICLR (source: Mahajan, Bhasin & Aggarwal, 2024). 3️⃣ AI4Bharat's significant contribution to India's R&D capabilities The team at AI4Bhārat in collaboration with Microsoft India, Indian Institute of Technology, Madras, EkStep Foundation and others has done a stellar job in collecting, curating and processing local language datasets to unlock significant value for both public and private sector organisations. By using these datasets to fine-tune Transformer-based models like BERT & ALBERT, they have created models that often outperform models from global companies on niche NLP use cases. Additionally, this work has led to the formation of Sarvam as a venture-backed startup focused on the commercialisation of this research. 4️⃣ Growth of India's AI Startups The rise of generativeAI startups from India that are developing on top of the global foundational LLMs further highlights our strength in building AI applications. These startups are not only solving domestic use cases but also catering to global markets. 5️⃣ Conclusions India’s prowess in building AI applications is highly commendable. One way to make our mark on the global AI ecosystem is by standing on the shoulder of giants to build impactful products. Can India build its own foundational LLMs? Yes
But who is using them? How much is their adoption? To find answers to these questions, I’ve sourced publicly available data from various sources as below: 1️⃣ Number of Downloads on Hugging Face Hugging Face is the de-facto platform for developers to download AI models and datasets. I’ve considered the number of downloads (as a proxy for usage and adoption) of leading, open-source LLMs from USA (from Meta), China (from DeepSeek AI & Alibaba Cloud), and India (from Sarvam & Krutrim, as the two most well capitalized Generative AI startups). The data shows that in the same time period of the last one month from today: - US: LLama’s 3.2-1B & 3.1-8B-instruct were downloaded ~11M & ~6M times - China: DeepSeek-R1 & Qwen2-VL-7B-instruct were downloaded ~4M & 1.5M times - India: Sarvam-1 & Krutrim-2-instruct (built on top of Mistral-NeMo 12B) were downloaded ~5k and ~1k times 👉 These numbers show that the adoption of our leading LLMs is 3 to 4 orders of magnitude less than the most popular LLMs from China and USA respectively. The absolute numbers might be slightly different as these LLMs are also available as APIs, on cloud platforms etc. but the overall trend may not be that different. 2️⃣ Number of forks of Github repositories Forking of Github repos represents a stronger sign of adoption by the developer community, and here also the picture is similar: - meta-llama has been forked ~9700 times - DeepSeek-v3 has been forked ~13800 times - DeepSeek-R1 has been forked ~10000 times - Qwen-VL has been forked 400 times - Krutrim-2-12B has been forked 6 times - Sarvam doesn’t have a dedicated repo for Sarvam-1 3️⃣ Listing in LLM Marketplaces Customer-centric LLM marketplaces like AWS BedRock also provide an indication of customer usage & adoption. While Meta’s LLama and DeepSeek-R1 models are supported, none of India’s LLMs are available. 4️⃣ Support from LLM inference engines LLM Inference engines like vLLM also provide signals about LLM adoption for production use cases. vllm currently supports Llama and Qwen models but again no Indian LLMs yet. 5️⃣ Conclusions Overall, the analysis indicates that Indian LLMs do not currently receive significant user interest and therefore their impact is far less than top, global LLMs. Our LLMs likely have a competitive advantage for domestic use cases focused on speech and language e.g. translation, document analysis, speech recognition etc. The market size of our domestic use cases may not be big enough to justify investment by global companies, but it clearly represents an area where indigenous LLM builders can distinguish themselves. Following my previous post on the poor trajectory of India’s AI research record at top AI conferences, these data further show that we are far from the cutting-edge of AI research and a lot of work needs to be done to raise the bar in terms of global adoption and impact. Unfortunately No.
While India's contribution to AI papers at top AI conferences (including NeurIPS, ICLR, ICML, CVPR, EMNLP etc.) has remained flat over the last 10 years, China's contribution to the AI field, on the other hand, has dramatically increased and caught up with the USA during the same time period (Mahajan, Bhasin & Aggarwal, 2024). This period in the field of AI was marked by numerous innovations in Deep Learning for images, text, audio; Transfer Learning, Synthetic Data, Transformers to name a few. We witnessed the emergence of groundbreaking models such as BERT, GPT-1/2/3, Stable Diffusion etc., which eventually led to the development of ChatGPT and the advent of the current era of LLMs and GenerativeAI. India has missed the boat during this period and failed to proactively increase investment in R&D, infrastructure and capacity building for AI (our R&D budget is only ~0.65% of GDP vs. ~2.4% for China and ~3.5% for USA) as well as retain home-grown talent. There is no straightforward solution to India's AI R&D challenges. While are early signs of progress (e.g. AI4Bhārat, IndiaAI, BHASHINI), in order to truly turn the page and compete at the top of the global AI hierarchy, we need to execute robust AI investment, innovation and implementation strategies. (More to come on this topic) Published in BusinessWorld The promise of AI is real. Research from Accenture posits that AI could add $ 957 billion to the Indian economy and raise India’s income by 15 percent in 2035. Globally, the economic value that AI is expected to create close to $ 13 trillion by 2030. However, the stark reality is that India has close to 100,000 vacant data scientist jobs as of today, with the demand for AI-centric roles set to increase exponentially. How can India possibly unlock this massive economic potential of AI, without an established talent pipeline?
The lack of an established AI talent pipeline for a rapidly modernizing economy like India is alarming. While India has a working age population of close to 589 million, only 49 percent are said to possess digital skills, with the proportion of those able to understand and build AI products is far lower (World Economic Forum). Although the supply of engineering talent is steady, the nature of the rapidly changing jobs landscape means that core engineering jobs are transforming into digital roles that require strong software engineering and programming skills. Not only Indian universities have failed to keep pace with adapting the course curricula to the skills requirements of the modern data-driven industries but the consequences of not training candidates in fundamental data skills and leadership skills to build collaborative AI projects can be even more damaging to the economy in the long run. Academia suffers from an acute shortage of expert faculty to train students in state-of-the-art AI theory and practical knowledge at scale. This burden of nurturing and creating AI talent does not rest solely with educational institutions. Industry needs to step up and actively contribute by sharing business data, a critical ingredient for building data-hungry supervised AI systems, and foster a vibrant and collaborative ecosystem by partnering with both academia and startups to raise awareness of the kind of challenging business problems that only AI can solve effectively. To bridge the gap between industry requirements of AI talent and lack of industry- oriented AI education at universities, a number of edtech startups have stepped up. The majority of online edtech platforms focus on programming and coding skills, a key foundational skill to building AI systems. However, the pedagogical methods practised by most suffer from lack of imagination and creativity and do not innovate beyond offering the age-old offline classroom content via online platforms - the adage ‘old wine in a new bottle’ comes to mind. AI is a multidisciplinary field that requires strong creative, scientific and problem solving abilities to come up with novel solutions to pressing business problems. The ability to innovate beyond open-source models and solutions is fundamental to building tailored customer-centric AI solutions that incorporate the unique business and cultural context of India. If India is not able to keep pace with AI global superpowers like the USA and China, then not only is she at risk of lagging behind in the battle for tech supremacy but also faces the dire prospect of losing its emerging tech talent to countries that offer better opportunities to work at the cutting edge of AI. India is set to become the world’s youngest country with 64 percent of its population in the working age group, while western countries, China and Japan have an aging demographic. India must therefore implement policy changes, state-wide reskilling initiatives in cooperation with industry, academia and startups to reskill the nation’s youth in the latest digital and AI-first skills to steer India into the next decade as a leading digital economy. |
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