AI Adoption in India: Talent Gap Looms - LinkedIn Report

New Delhi, Feb 27 (PTI) Generative AI has rapidly transitioned from a mere buzzword to a critical business imperative for Indian organisations, with most business leaders in India prioritising AI adoption, says a report.

However, a significant challenge remains: finding professionals with the right AI and related skills to unlock the technology's full potential, a report by professional networking platform LinkedIn has revealed.

"Around 54 per cent of HR professionals in India report that only half, or fewer, of the job applications they receive meet all required and preferred qualifications. Finding candidates with the right technical (61 per cent) and soft skills (57 per cent) remains their biggest hiring challenge.

"The hardest-to-find skills in India include technical/IT skills such as software development, engineering (44 per cent), AI skills (34 per cent) and soft skills like communication and problem-solving (33 per cent)," the report said.

This scarcity of qualified candidates is forcing companies to become increasingly selective in their hiring processes.

According to the report, companies are exercising 'selective hiring' in 2025 with more than half of HR professionals in India saying they would only consider reaching out to (55 per cent) and hiring (54 per cent) of candidates who meet 80 per cent or more of job qualifications.

India is LinkedIn's second largest market in terms of membership, growing more than 20 per cent year-on-year. LinkedIn has over 150 million members in India.

Ruchee Anand, India Country Head, of Talent & Learning Solutions at LinkedIn, emphasised the critical need for a skills-first approach to hiring.

"AI is reshaping how we hire and develop talent, but the real unlock isn't just adopting AI -- it's making it work for the business. Too often, companies pour resources into AI tools without the right talent to unlock their full potential, turning a game-changing opportunity into a missed one.

"To break this cycle, businesses need to approach hiring with a skills-first mindset -- because while AI will be the tool that unlocks innovation, it's human skills like creativity, communication, and collaboration that will help companies truly stay ahead of change," she said.

Recognising the urgent need to bridge the skills gap, Indian companies are doubling down on upskilling initiatives. This commitment to employee development extends to leadership, with nearly half (48 per cent) of Indian leaders stating that investing in learning and development for AI training will be key to accelerating adoption.

The report is based on a combination of survey data and LinkedIn platform insights. It, among others, involved global studies of 1,991 C-suite executives, and over 300 Chief Human Resources Officers working in businesses with more than 1,000 employees.