India faces widening AI skills gap as 45 per cent firms flag workforce constraint: Report

A new SHRM India report highlights a growing skills gap, with 45 per cent of organisations citing AI, digital and data skills as a major constraint. The study underscores challenges in ESG capability, gig adoption, and workforce readiness amid rapid technological change.

New Delhi: As artificial intelligence (AI) unfolds an exciting yet uncertain future at the global level, 45 per cent of organisations in India identify AI, digital, and data skills as their single largest workforce constraint, according to a new report.

Around 54 per cent of organisations report moderate to low urgency on AI investment in the country.

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Green and ESG capabilities follow, with 41 per cent reporting a large gap. Only one in 14 organisations qualifies as advanced in ESG talent capability, while 31 per cent remain in the awareness and planning stage, says the ‘SHRM India Skill Intelligence Report 2026’.

The learning investment picture makes this harder to fix. Nearly 60 per cent of L&D budgets go toward digital self-paced content and classroom instruction.

On gig workforce models, the hesitation is a trust problem, not a regulation problem. About 53 per cent of adoption barriers relate to skill quality and career continuity. Just 13 per cent cite regulatory complexity, said the report.

India is at a defining moment in its workforce transformation journey. As organisations accelerate investments in AI, digital transformation, and sustainability, the real differentiator will be their ability to build future-ready skills at scale, said Achal Khanna, CEO, SHRM APAC and MENA.

Around the world, leaders are confronting the same challenge: how to prepare people and organisations for work that is being reshaped in real time.

“What stands out in India is the scale of opportunity. With one of the world’s youngest workforces and a rapidly evolving digital ecosystem, India is uniquely positioned to set the benchmark for how nations build resilient, future-ready talent,” said Johnny C Taylor, Jr., President and CEO, SHRM.

The report found that while awareness of the skills challenge is high, organisational capability to act on it at scale remains critically underdeveloped.