India's Workforce Embraces AI; Retail, Finance and Infrastructure Lags Behind Only 48% of employees indicated that their organizations provided them with AI training
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Modern technology, Artificial Intelligence (AI) is expected to contribute over USD 15.7 trillion to the world economy by 2030, more than the current combined output of India and China. Of this, USD 6.6 trillion will solely come from increased work productivity and the rest will come from AI consumption side effects.
A skilled workforce is crucial for companies aiming to achieve revenue and profit in an AI-driven business world. In India, while AI adoption is still in its early stages; the market is growing tremendously. Companies are training its workforce in AI applications and tools for tasks such as mundane work, customer service, market analysis, and more. But is it enough? Maybe not.
According to a recent report published by the Indian Institute of Management-Ahmedabad (IIM-A), 55 per cent of white-collar office workers said they use AI tools in the workplace. The usage ranges from enhancing customer service through speech-to-text and sentiment analysis in call centers, driving hyperlocal marketing campaigns, to performing lead analysis. Managers also leverage AI tools for fleet management, predictive maintenance, and data collection. On the other hand, 58 per cent of workers have added AI skills to their profile through self-training.
When comparing AI adoption across different sectors, the education sector (74 per cent), information technology (66 per cent), and public administration (61 percent) are leading. Surprisingly, retail and trade (31 per cent), infrastructure (38 per cent), and finance and insurance (54 per cent) are lagging behind. Furthermore, sectors like education, public administration, healthcare, and manufacturing show higher numbers of employees self-training than those trained by their organizations; only 48 per cent of employees indicated that their organizations provided them with AI training.
"While the optimism shown by employees in adopting AI in their workplace is encouraging, it needs to be accompanied by robust programs to overcome information asymmetry. Upskilling programs must include a range of subcategories focused on understanding AI, specific applications, and AI ethical considerations in the workplace. Both employers and educational institutions must collaborate on structuring training programs for new talents and those continuing to grow in the AI field," said Manish Tewari, Co-Founder of Spydra Technologies.
The report also found that 68 per cent of employees expect AI to automate their jobs within the next five years, while 40 per cent are concerned about their skill gaps. Nevertheless, 53 per cent believe AI will generate new jobs.
"What is interesting, nevertheless, is the dualism of perception: although 40 percent of respondents fear their skills may become inadequate for the future labor market, an even higher 63 percent see AI as a driver of new job creation. This paradox reflects the complex feelings and expectations surrounding AI in the workplace. The AI adoption rate correlates with academic backgrounds, highlighting the role of our educational system in preparing the workforce for an AI-enhanced world. This realization urges us to rethink our curricula at all levels of education and gives us confidence that we can face the challenges of an AI-driven work environment," said Hariom Seth, Founder of Tagglabs.
The report also highlighted some structural weaknesses in the Indian education system that hinders the development of an AI-driven workforce.
"There is an immediate and urgent need for comprehensive AI education and upskilling programs. Employers, educational institutions, and policymakers must collaborate to bridge this knowledge gap. By doing so, we can help dispel the fear of job losses and instead foster a culture of people ready and willing to engage with AI as a tool that can transform industries. The report is an eye-opener. It's not just about being ready for the future of work; the future of work is already here. Our challenge now is to ensure that the Indian workforce not only braces for this AI-driven transformation but is also prepared to lead and innovate within it," Seth added.
"We must accept the fact that AI, ML, AR-VR, and other cutting-edge technologies have transitioned from being mere elements of science fiction to becoming integral parts of our present reality. The AI age is upon us, and its influence is growing significantly within the workforce and across various industries. Businesses and employees are realising the potential for enhanced efficiency and innovation through AI technologies, while industries are beginning to grasp the transformative impact of AI on everything from customer service to product development," Professor Bharat Bhasker, Director, IIMA further said in the report.
However, India needs to go a long way before hitting a fully AI-skilled workforce since it still has a huge educational gap compared to other developed nations. India's high-impact papers rise from one per cent to seven per cent in 20 years whereas the US and other European countries are producing highly referred research papers.
