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Technology 19-Feb, 2025

India’s AI talent deficit: Rapid expansion fails to close gap with global leaders

By: Shantanu Bhattacharji

India’s AI talent deficit: Rapid expansion fails to close gap with global leaders

Photo courtesy: Pixabay

Despite a strong talent pool adept at implementing AI solutions, New Delhi has yet to achieve significant breakthroughs in the foundational research that propels the sector’s advancement.

India has positioned itself as a key player in artificial intelligence, with one of the world’s largest AI talent pools. However, retaining this skilled workforce remains a significant challenge, Prime Minister Narendra Modi recently acknowledged at the AI Action Summit in Paris.

Despite a rapid expansion of AI expertise, the country ranks 13th globally in AI talent concentration, with just 0.42 per cent of LinkedIn members identifying as skilled in the field. This places it behind smaller but technologically advanced nations such as Israel, Singapore, and South Korea. Given India’s vast population and robust science and engineering education system, the depth of its AI talent pool remains unexpectedly shallow, the Business Standard has reported.

A Stanford University report analysing LinkedIn data found that between 2016 and 2022, India saw the world’s highest surge in AI talent—263 per cent—yet it is also experiencing the most significant AI talent exodus. With a net migration rate of -0.76 per 10,000 AI professionals, India leads the world in AI brain drain, outpacing even Israel and South Korea. This persistent outflow raises concerns about India’s ability to establish itself as an AI powerhouse.

While government initiatives like the National AI Strategy and AI Mission Initiative aim to foster a robust AI ecosystem, they have yet to create competitive job opportunities that can retain top talent. Without addressing this challenge, New Delhi risks losing its AI edge to countries offering more lucrative opportunities and research environments.

Compounding the challenge is India’s weak standing in AI patents. In 2022, the country accounted for just 0.23 per cent of global AI patents, underscoring a gap in research and innovation. This suggests that while India’s AI talent excels in implementation, it has yet to make significant foundational breakthroughs in the field.

By contrast, China dominates AI patents, holding over 60 per cent of global filings, while the United States follows with around 20 per cent. This stark disparity raises concerns about India’s ability to compete at the highest levels of AI development, as innovation and intellectual property remain key drivers of long-term leadership in the sector.

Several reports mentioned that as of August 2023, India boasts nearly 4,16,000 AI professionals, with projections estimating this number will reach one million by 2026. Despite this growth, a significant demand-supply gap persists, ranging from 60 per cent to 73 per cent in key roles such as machine learning engineers and data scientists. Notably, this disparity highlights the need for continued focus on skill development and education to meet the escalating demand for AI expertise.

The human flight and brain drain index for India stood at 4.8 in 2024, a slight improvement from 4.9 in 2023, yet still indicative of ongoing talent migration. Factors contributing to this trend include the pursuit of better economic opportunities, advanced education, and favourable global migration policies. Around 25 lakh Indians migrate annually, seeking higher pay and improved working conditions abroad.

Despite challenges like brain drain, experts say cross-sector collaboration can help India harness its demographic dividend. By nurturing innovation and professional growth, the country stands to bolster its position in the global AI race.

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