India’s AI army hits 4 lakh strong

Since 2017, AI hiring in India has grown eightfold. Unlike the earlier trend of hiring generalists, enterprises are now looking for specialists with deep technical knowledge, stack fluency, and the ability to deploy AI tools in real-world environments.

India’s Artificial Intelligence n c e (AI) workforce has seen a remarkable rise, crossing 4.16 lakh professionals in 2025, according to a new report by staffing and workforce solutions firm Quess Corp. However, the boom in AI talent comes with a significant caveat — a growing 51% demand-supply gap that points to the urgent need for expanded skill development across the country. The report highlights a substantial shift in the AI employment landscape over the past few years. Since 2017, AI hiring in India has grown eightfold. Unlike the earlier trend of hiring generalists, enterprises are now looking for specialists with deep technical knowledge, stack fluency, and the ability to deploy AI tools in real-world environments.

This shift from experimental projects to enterprise-grade deployments marks a new phase in the adoption of AI across sectors. Kapil Joshi, CEO of Quess IT Staffing, noted, “The emergence of AI isn’t just a talent shift — it’s a generational opportunity. Between March 2024 and March 2025, the demand for AI and data talent surged by nearly 45% in India. In newer domains like Generative AI (GenAI), there is just one qualified professional available for every ten job openings. This isn’t merely a hiring issue — it’s a strategic challenge.” The widening gap between available and required talent is particularly stark in cutting-edge areas such as GenAI and Natural Language Processing (NLP). To bridge this divide, the report calls for stronger collaboration between industry and academia, targeted upskilling initiatives, and decisive government policy measures.

The financial rewards for AI talent have also risen sharply. Entry-level professionals in AI roles now earn between Rs 8 to Rs 12 lakh per annum, while those with five to eight years of experience in high-demand areas like NLP and GenAI are drawing salaries in the range of Rs 25 to Rs 35 lakh per annum. Senior AI professionals, especially in product companies and Global Capability Centres (GCCs), are earning upwards of Rs 45 lakh per year. The report shows that the Banking, Financial Services and Insurance (BFSI) sector accounts for the highest demand for AI talent, contributing 24% of the total. It is followed by IT services and the healthcare industry. Popular job roles include data scientists, machine learning engineers, AI developers, and AI researchers.

Additionally, demand is growing for AI product managers and business analysts who can bridge the gap between data science and business outcomes. While metropolitan cities like Bengaluru, Delhi NCR, and Hyderabad continue to dominate AI hiring, there is also growing momentum in Tier-2 cities. These emerging hubs now account for 14–16% of the total AI demand, with Kochi, Ahmedabad, and Coimbatore leading this trend and contributing to 70% of the Tier-2 city hiring. This reflects the decentralisation of India’s AI talent pool and the expansion of digital infrastructure beyond the major urban centres. Global Capability Centres are playing a key role in this transformation, accounting for 23% of India’s AI hiring. As these centres build AI competencies, they are also contributing significantly to the creation of a GenAI-ready workforce. The report concludes by urging stakeholders to invest in long-term talent strategies to ensure India remains competitive in the global AI race. Without timely intervention, the current talent shortage could turn into a missed opportunity for one of the world’s largest emerging AI hubs.