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AI may be the buzzword across boardrooms in India, but true transformation is still taking shape. While most organizations have embarked on their AI journey, many remain stuck in the early stages compared to global markets, which are in more advanced stages of AI adoption. About 45% of Indian firms are at the early stage of adoption – highest globally, 38% at the intermediate stage, and only 17% at an advanced stage where AI is embedded in core business processes and innovation.
The IDC InfoBrief “AI at Work: The Role of AI in the Global Workforce,” commissioned by Deel, presents findings from a survey of over 5,500 business leaders across 22 markets. The findings further reveal that while AI adoption is gaining momentum, only 54% of Indian organizations have formal reskilling programs in place, compared to 67% globally. This points to a widening gap between technological advancement and workforce preparedness, underscoring the urgent need for structured, future-focused learning.
Across HR functions in India, AI is most widely used in talent management (66%) and talent acquisition (57%). However, as AI takes over repetitive and knowledge-based tasks, organizations face new challenges in talent development, workforce integration, and leadership pipelines.
The top barriers to adoption include:
- Data privacy and compliance concerns (46%)
- Integration with legacy systems (45%)
- Lack of internal AI expertise (43%)
“AI is no longer emerging, it’s fully here,” said Nick Catino, Global Head of Policy at Deel. “It’s reshaping how we work and how businesses operate. Entry-level jobs are changing, and the skills companies look for are too. Both workers and businesses need to adapt quickly. This isn’t about staying competitive, it’s about staying viable.”
Workforce restructuring and redesigning
AI’s influence is prompting a widespread workforce redesign. Globally, 91% of organizations have experienced role changes or displacement, with one-third (34%) undergoing significant restructuring to integrate AI. In India, nearly half (43%) companies say job roles are being significantly or fully redesigned across departments, reflecting how responsibilities, skills, and workflows are being reshaped to integrate AI into daily operations. About 70% of Indian organizations expect AI to reduce entry-level hiring within the next 1-3 years.
When hiring entry-level talent, Indian employers now prioritize technical certifications (66%), problem-solving (58%), and communication skills (52%) over academic degrees. Strikingly, only 5% of organizations cite tertiary education as a top hiring criterion.
As automation expands, human roles are shifting toward strategic oversight, AI systems management, and creative problem-solving, marking a redefinition of how work gets done.
India’s reskilling gap: awareness rising, action still limited
India lags in reskilling: only 54% report steady investment in reskilling, lowest amongst the countries surveyed versus leading countries like Canada (77%), Brazil (76%), and Singapore (74%).
While 45% of Indian organizations have not started any reskilling effort, they are planning to do so in the next 12 months.
However, Indian organizations still face barriers in their reskilling effort. Top barriers include:
- Limited employee engagement (58%)
- Budget constraints (49%)
- Lack of expert trainers (45%).
The lag in reskilling is widening India’s AI talent gap. Despite a large tech workforce, 63% of organizations struggle to hire qualified AI talent, and 61% say role awareness is low, prompting salary premiums: 41% will pay up to 25% more, and 36% will pay 25 to 50% more for specialized AI roles.
Beyond pay, companies are offering access to cutting-edge tools and projects (48%) and clear career growth and promotion paths (44%) to retain this scarce talent.
Governance gap
Governance gap
As AI adoption accelerates, many Indian firms remain cautious about compliance. Over 53% of companies are not familiar with local AI regulations, one of the highest globally, just behind China (57%) and France (54%). While 58% have internal AI usage policies, only 16% have formally enforced them.
Among those with existing policies, the top focus areas are data privacy and security (81%), accuracy and validation (70%), and copyright and content generation (60%). Still, 51% of employers say AI-related local regulations remain unclear, creating uncertainty around compliance and ethical use.
“Artificial intelligence is reshaping the global workforce at an unprecedented pace, outstripping any recent technological shift,” noted Dr. Chris Marshall, Vice President for AI in Asia Pacific, IDC. “Organizations that will thrive are those that unite automation with a human-centered vision – investing in upskilling, redefining entry-level opportunities, and ensuring that governance and ethics evolve in step with innovation.”
The study also found that South Asia has emerged as a preferred region for AI hiring globally, with as many as 82% of international firms sourcing talent from the region. India stands to gain significantly from this trend if it bridges its AI skills gap. With its large tech workforce and early adoption momentum, the country is well-positioned to strengthen its place in the global AI talent ecosystem.