India must upskill fast to keep up with AI jobs, says new report

As artificial intelligence (AI) reshapes economies globally, India stands at a critical crossroads. A new report — AI for All: Building an AI-ready Workforce in Asia-Pacific, backed by Google.org and the Asian Development Bank — warns that despite India’s vast workforce, the country must urgently scale up effective and inclusive AI upskilling programs.

The report highlights AI’s potential to contribute up to USD 3 trillion to the Asia-Pacific region’s GDP by 2030, with India — home to the world’s largest and youngest workforce — playing a pivotal role. But it also cautions that, without proactive skilling, vulnerable groups may be left behind as automation displaces traditional roles.

Workers at risk

The study points to administrative and support roles — such as data entry, scheduling, and customer service — as especially at risk, given advances in AI-driven automation. These jobs are disproportionately held by women, informal workers, and those with low digital literacy — particularly in sectors like manufacturing, textiles, and logistics.

“In countries like India, where millions are engaged in labor-intensive AI training tasks, the question arises — what happens when these too are automated?” said Kelly Forbes, Executive Director of the AI Asia Pacific Institute. “Without creating pathways into higher-value jobs, we risk leaving large parts of the population behind.”

A young but underserved workforce

While India’s youth are a demographic advantage, many face a disconnect between their skills and what employers now demand — such as critical thinking, adaptability, and proficiency with AI tools. Notably, even graduates from India’s top engineering colleges struggled to secure jobs in 2024, underscoring the need to align training with evolving job markets.

The report also flags India’s large informal workforce — including delivery staff, factory workers, and packagers — as highly vulnerable to automation. Many lack access to digital tools or the internet, particularly in rural areas, posing another barrier to inclusive AI adoption.

Women face steeper hurdles

Women, who make up around 35% of India’s workforce, are over-represented in roles most at risk of automation. Many leave the workforce for family reasons and face a rapidly changing job market when they try to return. The report notes that AI can help close these gaps, but only if women have equitable access to reskilling opportunities — ideally through flexible, contextual training tailored to their needs.

Five ways India can prepare an AI-ready workforce

The report outlines five key steps to help India prepare:

1. Tailored skilling programs: Design initiatives for specific groups such as graduates, informal workers, women, and seniors, each with distinct challenges.

2. Focus on practical training: Over 40% of workers surveyed in Asia-Pacific prefer hands-on, real-world training over theoretical knowledge.

3. Awareness campaigns: With less than 15% of workers participating in AI training programs across APAC — likely even fewer in India — more outreach is needed to boost enrollment.

4. Support for MSMEs: Micro, small, and medium enterprises (MSMEs) employ most of India’s workforce but lack resources for AI training. Public-private partnerships can help bridge this gap.

5. Close gender and digital divides: Invest in accessible, multilingual, and gender-sensitive training to ensure inclusion of women and digitally disadvantaged groups.