India’s AI Talent Shortage: Just One Qualified Engineer for Every 10 Generative AI Jobs
India stands at the forefront of a digital revolution, powered by artificial intelligence (AI), machine learning (ML), cloud computing, and cybersecurity. Yet, beneath the promising growth story lies a troubling gap that threatens to stall the momentum. According to the latest Digital Skills and Salary Primer Report FY 2025–26 from TeamLease Digital, India has only one qualified engineer available for every ten generative AI roles.
This skills mismatch is not just a statistical quirk—it’s a looming challenge that could limit India’s ambition to be a global AI powerhouse. With technology companies racing to adopt AI-driven solutions, the country faces the urgent task of filling a talent vacuum in critical domains such as AI engineering, cloud architecture, and cybersecurity.
A Startling Shortage in Generative AI Talent
Generative AI, the technology behind tools like ChatGPT, Gemini, and Claude, has captured global attention and reshaped business workflows. Indian companies have been quick to explore its potential across industries ranging from finance and healthcare to retail and manufacturing.
But the surge in demand for generative AI engineers is being met with a harsh reality: there simply aren’t enough skilled professionals to go around.
The TeamLease report reveals that for every 10 openings in generative AI, there is only one engineer equipped with the right skillset. This tenfold shortage is a bottleneck, particularly at a time when businesses are eager to integrate AI-driven solutions to boost efficiency, customer experience, and profitability.
Salary Inflation: Demand Outstrips Supply
The scarcity of AI-ready engineers has also led to a steep rise in salaries, particularly for senior roles. The report highlights that compensation for generative AI experts can go as high as ₹58–60 lakh per annum—a figure that significantly outpaces many traditional IT roles.
Cybersecurity and MLOps (Machine Learning Operations) professionals are also witnessing unprecedented pay scales, with senior positions fetching between ₹50–55 lakh annually. This compensation trend is a direct reflection of the imbalance between supply and demand. Companies, desperate to secure scarce talent, are willing to pay top dollar, driving a salary bubble that may not be sustainable long-term.
For young engineers and students, this creates a lucrative incentive to acquire AI skills quickly. However, the pipeline of talent is still too thin to meet the pace of demand.
Cloud Computing and Cybersecurity: Parallel Crises
AI isn’t the only area facing a skills drought. Cloud computing and cybersecurity—two sectors that form the backbone of digital transformation—are also critically under-resourced.
The report reveals that cloud computing faces a 55–60% talent deficit, while cybersecurity positions remain difficult to fill across organizations. This is especially concerning because cloud adoption is surging in India, driven by startups, enterprises, and government-backed digital initiatives. Meanwhile, the rise in cyber threats has made security professionals indispensable.
The talent shortage in these domains threatens not only growth but also national digital security. As businesses shift sensitive data to the cloud, the absence of enough skilled cybersecurity experts could leave them exposed to sophisticated attacks.
Tier-2 Cities Rise as New Tech Hubs
Interestingly, the report also notes a shift in the geography of India’s tech ecosystem. Traditionally, Bengaluru, Hyderabad, Pune, and Delhi-NCR have dominated the IT and AI job market. However, Tier-2 cities such as Coimbatore, Chandigarh, Jaipur, and Bhubaneswar are emerging as viable hubs for AI and digital roles.
This shift is driven by several factors:
- Cost Advantage: Companies can set up operations in Tier-2 cities at lower costs while still accessing quality talent.
- Talent Migration: Engineers returning to their hometowns after the pandemic are boosting local ecosystems.
- Salary Parity: Entry-level salaries in Tier-2 cities are now approaching those offered in metros, reducing the pay gap.
Moreover, diversity is improving in these emerging hubs. Female participation in tech roles has crossed 40% in certain Tier-2 locations, a remarkable milestone compared to historically low female representation in Indian IT.
India’s Digital Growth Ambition
India’s digital economy is projected to grow nearly twice as fast as GDP, potentially contributing one-fifth of the national economy by 2029–30. AI, cloud, and cybersecurity will play central roles in realizing this vision.
Neeti Sharma, President of TeamLease Digital, has cautioned that this ambition is at risk if the talent gap is not addressed. Global Capability Centres (GCCs) alone are expected to generate 1.2 million new tech roles by 2027, yet fewer than 10% of suitable engineers may be available to fill them.
Without urgent skilling initiatives, India could face a paradox: abundant digital opportunities, but insufficient talent to seize them.
The Root of the Skills Gap
Several structural challenges explain why India’s AI talent pipeline is not keeping up with demand:
- Outdated Curriculum: Many engineering colleges still emphasize legacy programming languages and theoretical computer science, while neglecting applied AI, cloud architecture, and cybersecurity.
- Slow Industry-Academia Collaboration: Universities and tech companies have not yet established strong pipelines for internships, apprenticeships, and real-world AI training.
- Rapid Tech Evolution: AI, ML, and generative AI evolve faster than traditional education systems can adapt. What is relevant today may become outdated within two years.
- Skilling Divide: While elite institutions like the IITs and IIITs are producing AI-ready engineers, the vast majority of India’s engineering colleges lag behind.
These factors contribute to the startling imbalance, leaving companies scrambling to find scarce talent in an ocean of graduates.
Reskilling: The Only Way Forward
Closing this gap will require aggressive reskilling initiatives on a national scale. Some key solutions include:
- Industry-Led Training: Companies must invest in upskilling their current workforce in AI, cloud, and cybersecurity.
- Government Partnerships: Public-private initiatives can help create affordable reskilling platforms accessible to millions.
- Micro-Credentials: Short, intensive courses in AI and ML can equip engineers with practical, job-ready skills faster than traditional degree programs.
- Continuous Learning Culture: Professionals must embrace lifelong learning to remain competitive in fast-evolving fields.
If India can pivot to a reskilling-first approach, the current crisis could transform into a long-term opportunity.
Global Comparisons: Where Does India Stand?
Globally, countries like the United States, China, and the European Union are also grappling with AI talent shortages. However, India’s challenge is magnified by scale. With its massive engineering workforce, even a modest percentage gap translates into millions of unfilled roles.
China has been investing heavily in AI education, integrating machine learning modules into high schools and universities. The U.S., meanwhile, benefits from elite institutions and strong industry-academia collaborations.
India must find its own model—one that balances affordability, accessibility, and quality—if it is to remain competitive on the world stage.
Industry Response and Future Outlook
Many Indian IT giants, startups, and GCCs have already launched internal reskilling programs. Infosys, TCS, and Wipro, for example, run AI-focused upskilling academies for employees. Startups are also investing in training programs to grow their own AI talent pipelines.
But this fragmented approach is not enough. A coordinated effort involving universities, government, and private companies will be essential. The National Education Policy (NEP) 2020 provides some hope, emphasizing skill-based curricula, but its implementation will take time.
In the immediate term, India must focus on bridging the employability gap—ensuring that the millions of engineers graduating each year are not just degree-holders but job-ready professionals with AI-relevant skills.
Final Verdict
The skills crisis in India’s AI sector is both a challenge and an opportunity. On one hand, the shortage of talent threatens to slow down digital growth, inflate salaries, and increase dependence on foreign expertise. On the other hand, it presents a unique opportunity for India to reimagine its education and skilling systems, empowering its workforce to lead in the AI-first world.
If policymakers, educators, and businesses act decisively, India could turn this crisis into a competitive advantage—transforming from a nation struggling with talent shortages into the global hub for AI innovation.
