Over 40% of India’s IT and gig workforce now using AI, employability hits new high
On the employer side, AI-driven recruitment systems have been embraced by 70 per cent of IT companies and 50 per cent of firms in the banking, financial services, and insurance (BFSI) sector.
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More than 40 per cent of India’s IT and gig workforce are now using artificial intelligence (AI) tools for automation, data analysis, and creative tasks, underscoring the growing integration of AI into the country’s employment landscape, according to the 13th edition of the India Skills Report 2026.
The report, jointly released by the Educational Testing Service (ETS), the Confederation of Indian Industry (CII), the All India Council for Technical Education (AICTE), and the Association of Indian Universities (AIU), draws insights from over 100,000 candidates and 1,000 employers across seven major sectors.
It reveals that India’s employability rate has risen to 56.35 per cent, up from 54.81 per cent in 2025, indicating steady progress in job readiness and skill adaptability. The study also found that Tier-2 and Tier-3 cities such as Lucknow, Kochi, and Chandigarh are emerging as new employability hubs, narrowing the urban–rural skill divide.
For the first time, female employability (54%) has overtaken male employability (51.5%), a shift attributed to digital skilling programmes and the wider acceptance of hybrid work models, according to the report.
India’s role in the global AI workforce is also expanding rapidly. The country now accounts for 16 per cent of the world’s AI talent, a figure expected to grow to 1.25 million professionals by 2027. Generative AI adoption has been particularly strong, with over 90 per cent of employees across sectors using such tools to enhance productivity.
On the employer side, AI-driven recruitment systems have been embraced by 70 per cent of IT companies and 50 per cent of firms in the banking, financial services, and insurance (BFSI) sector.
Hiring sentiment for FY 2026–27 has strengthened significantly, with 40 per cent of employers expressing intent to hire—up from 29 per cent in the previous year—fuelled by ongoing demand in technology, BFSI, manufacturing, renewable energy, and healthcare.
The report further projected that by 2030, global labour shortages could reach 85 million, while India may have a surplus of 45 million skilled workers, positioning it as the world’s leading talent hub. Within this, the BFSI and fintech sectors alone are expected to create 250,000 new jobs by the end of the decade, expanding at an annual growth rate of 8.7 per cent.
