The skills deficit that could cost India its AI moment

AI has become deeply integrated into our daily routines, influencing how we work, communicate, shop, and make decisions – often so effortlessly that we barely notice it. In 2024, more than seven in ten organisations use AI in at least one business function, up from around 50% previously – proof that AI has shifted from the sidelines to the very centre of business.

India should be poised to lead the shift. We have a digitally native workforce, deep-tech expertise, and momentum in digital public infrastructure. Yet, one critical barrier threatens to blunt this advantage: the gap between our young workforce’s confidence and the investments made in their skills.

Confidence vs. Investment Gap

According to ADP’s People at Work 2025 survey, less than half (43%) of India’s young workforce (between 18 and 26 years) say they have what it takes to advance their careers in the next three years; and fewer than one third (27%) feel their employers are investing in the skills they will need in the future.

The findings should worry business leaders. Without structured upskilling, AI projects stall, execution slows, and attrition rises. The result: India risks watching its demographic dividend dissipate just as the AI revolution demands fresh capability.

Why systematic upskilling matters

Too much of India’s workforce training remains fragmented — short-term workshops, compliance refreshers, or basic digital literacy drives. These do not prepare young professionals for AI’s fast-changing demands. The cost of inaction is immense: global studies estimate skill shortages could drain up to US$5.5 trillion from the economy by 2026.

Employees need clear, continuous pathways: what to learn, how to practice, and how it translates into real projects and jobs. Effective programs are not tick-box exercises — they are measurable, tied to business outcomes, and built into career progressions. When done well, they turn AI from a threat into an accelerator of productivity, innovation, and retention.

A Four-Point Agenda for Leaders

 1. Make future skills part of the business plan

Treat capability-building with the same seriousness as revenue or cost. Assign owners, set measurable KPIs, and review skills progress alongside financials. When skilling is a line item in the business strategy, execution follows.

2. Blend learning with real work

Training only sticks when applied quickly. Pair short modules with live projects, mentor check-ins, and safe sandboxes to try AI tools. A rhythm like “learn on Monday, apply by Friday, share next week” keeps momentum high.

3. Build partnerships beyond the organization

Co-design programs with universities and training partners so internal credentials hold external value. Bring in experts on model risk, privacy, and bias to teach the why, not just the how. Portability builds credibility.

4. Embed continuous learning into culture

Protect learning time. Reward managers for enabling skill application, not just for hitting short-term targets. Celebrate small wins — like a ten-minute process saved by AI — to normalize experimentation and curiosity.

A closing choice for India

 AI will redefine the future of work. Whether India becomes a global hub for AI-ready talent depends on the choices leaders make today. Skills are the operating system of business — without upgrading them, even the best technology cannot deliver.

India’s youth are ready and willing. If employers match that intent with investment, India won’t just participate in the AI era — it will help define it.