India’s AI sector poised to surpass 2.3 million job openings by 2027: Report

New Delhi, March 10
The artificial intelligence (AI) sector is poised to surpass 2.3 million job openings by 2027, according to a report on Monday.

The report by Bain & Company showed that reskilling and upskilling existing talent is key to meeting the growing demand in the country.

It showed that the AI talent pool in India is expected to grow to around 1.2 million, presenting an opportunity to reskill more than 1 million workers.

“India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5-2x of the talent availability. The challenge -- and opportunity -- lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets,” said Saikat Banerjee, Partner and leader in Bain & Company’s AI, Insights, and Solutions practice in India.

Banerjee noted that while “AI talent shortage is a significant challenge, it is not invincible”.

“Addressing it requires a fundamental shift in how businesses attract, develop, and retain AI talent. Companies need to move beyond traditional hiring approaches, prioritize continuous upskilling, and foster an innovation-driven ecosystem,” he said.

Globally, AI-related job postings have surged by 21 per cent annually since 2019, with compensation growing 11 per cent annually over the same period. Yet the number of qualified candidates has not kept pace, creating a widening talent gap that is slowing AI adoption worldwide.

Nearly half (44per cent) of executives cited a lack of in-house AI expertise as a key barrier to implementing generative AI. This talent gap is expected to persist through at least 2027, with its impact varying in severity across global markets.

The report predicted that in the US, one in two AI jobs could be left unfilled by 2027. In the next two years, AI job demand in America could reach up to more than 1.3 million, while supply is on track to hit less than 645,000 -- implying the need to reskill up to 700,000 workers in the country.

Germany could see the biggest AI talent gap, with around 70 per cent of AI jobs unfilled by 2027. With an estimated 62,000 AI professionals available to fill 190,000 -- 219,000 job openings in 2027, there is a clear opportunity for reskilling employees in Germany.

The UK may also see talent shortfalls of more than 50per cent, with just 105,000 AI workers available to fill up to 255,000 AI jobs in 2027.

Similarly, Australia is also expected to see a shortfall of more than 60,000 AI professionals by 2027, with just 84,000 AI specialists available to fill up to 146,000 jobs, said the report.