The world is starting to look for AI talent in almost every industry now. India is gearing up to make this demand. The Indian workforce is bullish on incorporating AI into organizational systems. But are we rushing in?
According to IMF chief Kristalina Georgieva, AI will impact 40% of jobs globally. But lower-GDP nations face less disruption with just 26-40% exposure. Georgieva also warns it may worsen inequality and social tensions, urging policymaker action now. According to an opinion piece by Peter Coy on New York Times, the concern isn’t that AI is being introduced into the workplace, but how it’s being done.
Read more: What employees want: Is WFH over or will work become even more distributed in the future?
In a 2024 report by Wheebox, Impact of AI on the Future of Work, Skilling & Mobility, India has come out on a global leadership position in AI skill penetration and talent concentration, earning an impressive score of 3.09. With an installed talent base of 416,000 AI professionals as of August 2023, India is well-poised to meet the current demand of approximately 629,000, a figure expected to surge to 1 million by 2026.
In India, the overall young employability has improved to 51.25% over the previous year. Among states with large talent pools, Haryana, Maharashtra, Andhra Pradesh, Uttar Pradesh, Kerala, and Telangana have the highest concentration of highly employable youth. Specifically, Haryana leads with 76.47% of test takers scoring 60% and above on the WNET.
In the age range of 22 to 25 years, Uttar Pradesh stands out with the highest talent concentration at 74.77%, followed closely by Maharashtra at 71.97%. Additionally, the overall employability rate within this age group across the top 10 cities is 63.58%. Among new age industries adoptingAI is healthcare, automobile, legal.
Investing in AI extends beyond technology; it signifies our commitment to a more inclusive and prosperous future. India’s allure for foreign investments in IT and business catalyses our dreams of a digital tomorrow
Nirmal Singh, Chief Convenor of India Skills Report, and Founder and CEO, Wheebox
According to Nirmal Singh, Chief Convenor of India Skills Report, and Founder and CEO, Wheebox,“India’s potential to lead the global AI revolution is evident in the significant strides we’ve made, coupled with the vibrant IT landscape that defines us. Navigating this transformative journey requires addressing challenges with a focus on inclusion. Collaborative efforts among government bodies, businesses, and educational institutions are paramount, as witnessed in successful youth upskilling initiatives and advancements in our digital infrastructure.”
He further added, “Investing in AI extends beyond technology; it signifies our commitment to a more inclusive and prosperous future. India’s allure for foreign investments in IT and business catalyses our dreams of a digital tomorrow. The AI revolution is our call to shape a people-first economy, lead in innovation, and pioneer a future where technology and humanity harmoniously coexist. The government’s commitment to AI-driven economic transformation is evident through proactive initiatives like the AI Task Force and NITI Aayog’s ‘National Strategy for AI.’”
AI Impact on Jobs
However, is all well with those who are the potential AI workforce of India? AI has brought about waves of layoffs emanating from its cost cutting advantages. Last year, LinkedIn laid off thousands as it leaned in to AI.
According to an Indeed survey, while Indian jobseekers are embracing the potential benefits of AI systems and tools, they also have concerns. Key worries include the need for reskilling or upskilling (43%), potential job losses in their industry or profession (29%), and ethical considerations (20%). Additionally, they express apprehensions about negative impacts on their work wellbeing (17%) and the possibility of bias (15%).
AI Despite the Risk
Still, the positivity towards AI isn’t dampened. In fact, there is a sense of anticipating transformation that’ll bring in hard times but sure times.
According to Generative AI 2023: An ISACA Pulse Poll, despite the uncertainty and risk surrounding AI, 84% of respondents in Asia believe AI will have a positive or neutral impact on their industry, 84% believe it will have a positive or neutral impact on their organizations, and 83% believe it will have a positive or neutral impact on their careers. 84% of Asia-based respondents also say AI is a tool that extends human productivity, and 76% believe it will have a positive or neutral impact on society as a whole.
Examining how current roles are involved with AI, respondents in Asia believe that security (52%), IT operations (46%), risk team (44%) and compliance team (42%) are responsible for the safe deployment of AI. When looking ahead, almost one in four (24%) Asia-based respondents say their organizations are opening job roles related to AI-related functions in the next 12 months.
57% believe a significant number of jobs will be eliminated due to AI, but digital trust professionals remain optimistic about their own jobs, with 71% saying it will have some positive impact for their roles. To realize the positive impact, 86% of Asia-based respondents think they will need additional training to retain their job or advance their career.
The Indeed survey says that Indian employers are optimistic about the role of AI with over 85% expecting AI to create new jobs in 1-5 years. A majority of jobseekers (63%) are also excited about the potential impact, with 53% agreeing AI is likely to create more jobs. This optimism from jobseekers stems from the belief that AI is likely to make work more productive and manageable (86%), help jobseekers acquire new skills or improve skills (85%), enable jobseekers to focus on more complex, important tasks (47%), and help in getting hired for skills and potential rather than just experience (43%).
Employers also believe that AI could improve the nature of employees’ tasks (85%) and improve job security and opportunities for career development for their employees (77%).
Employers must work together to devise frameworks that allow the effective use of AI in order to facilitate technological advancement
Sashi Kumar, Head of Sales, Indeed India
Sashi Kumar, Head of Sales, Indeed India said, “This new survey brings encouraging news that jobseekers are not only aware of the promise of AI but are also excited about its potential. It demonstrates that job seekers are ready to embrace AI as a force for positive change in their careers. However, employers must work together to devise frameworks that allow the effective use of AI in order to facilitate technological advancement.”
90% of HR/talent acquisition leaders think AI systems and tools will make their job easier and 86% believe that AI can improve the hiring and candidate experience. 81% also are optimistic that AI systems and tools will allow them to focus on the more ‘human’ aspects of their job.
AI in Recruitment & Hiring
A large majority of jobseekers (78%) think the development of AI systems and tools will improve the hiring and candidate experience. According to research from the National Bureau of Economic Research, generative AI, including ChatGPT, can increase workforce productivity by an average of 14%.
For example, last year, Ceipal, ??an AI-powered talent acquisition platform, integrated ChatGPT into its applicant tracking system (ATS) to help recruiters and staffing professionals work more efficiently and effectively. The integration aims to enhance the recruitment and talent acquisition process, so that users can build boolean search strings to amplify candidate sourcing, enabling them to search internal and external jobs to identify, find, and pursue quality talent quickly.
Also, users can produce interview questions and answers to evaluate candidates and set expectations about job requirements upfront, empowering them to make more informed hiring decisions and share more detailed data with hiring managers.
With our ChatGPT integration, users can spend less time on more routine tasks, such as manual sourcing and data entry, and focus more on higher-level initiatives, such as developing and strengthening candidate relationships, that will help grow their business
Ceipal Founder and CEO Sameer Penakalapati
Ceipal Founder and CEO Sameer Penakalapati, says “With our ChatGPT integration, users can spend less time on more routine tasks, such as manual sourcing and data entry, and focus more on higher-level initiatives, such as developing and strengthening candidate relationships, that will help grow their business.”
However, over half (50%) of jobseekers surveyed in the Indeed survey are concerned about AI replacing human judgment and intuition in hiring decisions. To have a fair and unbiased job search process, jobseekers would like employers to continue to ensure there is still a human approach/monitoring (48%), and that data used for AI systems and tools is representative of minority groups (41%).
How India Stands Against Global Counterparts
Still, as per these surveys, the workforce in India are by far the most bullish on AI, with 98% of HR professionals and 91% of job seekers saying they’re currently using AI tools for work. In comparison, more than one-third (35%) of HR professionals and over half (53%) of job seekers in Japan say they aren’t using AI tools professionally at all. The case is almost the opposite in France, where 30% of job seekers and 25% of HR professionals say they are fearful of the technology.
Read more: Navigating India’s evolving job market: The imperative of continuous learning & upskilling
Other strong adopters of AI are the US and Canada, where AI is used by 92% of HR professionals and the UK (88%). However, these countries see some resistance from jobseekers with 41% of jobseekers in the UK, 30% in the US, and 42% in Canada stating that they do not use AI currently at all.
It’s still early days to point at AI with absolute judgement regarding its pros and cons. In fact, it doesn’t look like it’ll ever be simple to pinpoint them. Is India ready to incorporate AI into its work systems? Or would we have bitten off more than we can chew?
