Over 40% of India's IT, gig workforce adopt AI; employability rises

According to the India Skills Report 2026, India now contributes 16 per cent of the world's AI talent, projected to grow to 1.25 million professionals by 2027

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More than 40 per cent of India’s information technology (IT) and gig workforce are using artificial intelligence (AI) tools for automation, analytics, and creative tasks, highlighting the increasing integration of technology into everyday work, according to the 13th edition of the India Skills Report 2026.

 

Released by the Educational Testing Service (ETS) in collaboration with the Confederation of Indian Industry (CII), the All India Council for Technical Education (AICTE), and the Association of Indian Universities (AIU), the report draws insights from over 100,000 candidates and 1,000 employers across seven key sectors.

 

How has employability changed in India?

The study highlights a steady improvement in employability, which has risen to 56.35 per cent from 54.81 per cent in 2025, signalling consistent progress in job readiness and skill adaptability.

 

“Employability in India has improved to 56.35 per cent, up from 54.81 per cent in 2025, showing consistent progress in job readiness and skill adaptability. Tier-2 and Tier-3 cities such as Lucknow, Kochi, and Chandigarh are emerging as strong employability hubs, narrowing the urban–rural skill gap,” the report noted.

 

Are women more employable than men now?

For the first time, female employability at 54 per cent has surpassed male employability at 51.5 per cent, driven by digital skilling initiatives and hybrid work models, the report added.

 

What is India’s contribution to global AI talent?

The report pointed out that India now contributes 16 per cent of the world’s AI talent, projected to grow to 1.25 million professionals by 2027. Generative AI adoption is particularly high, with over 90 per cent of these employees across sectors using such tools.

 

AI-based recruitment has been adopted by 70 per cent of IT and 50 per cent of banking, financial services, and insurance (BFSI) organisations, the report stated.

 

Which sectors will drive future hiring?

Hiring intent for the financial year 2026–27 (FY27) stands at 40 per cent, up from 29 per cent the previous year, on the back of sustained demand in technology, BFSI, manufacturing, renewable energy, and healthcare.

 

By 2030, global labour shortages could total 85 million, while India is expected to have a surplus of 45 million skilled workers, making it the leading global source of talent, the report said.

 

The BFSI and fintech sectors alone are expected to generate 250,000 new jobs by 2030, at an annual growth rate of 8.7 per cent, it added.

 

(With PTI inputs)