Talent landscape Report for AI/ML Engineers in India – 2024

1.Executive Summary

India's Artificial Intelligence (AI) and Machine Learning (ML) sectors are rapidly transforming the landscape of technology, education, and industry, positioning the nation as a pivotal player in the global AI arena. The AI market in India is forecasted to reach a remarkable USD 17 billion by 2027, with a compound annual growth rate (CAGR) of 25-35% (Source: Nasscom). This growth is driven by substantial investments across digital content, data analytics, and supply chain optimizations, signaling a robust trajectory for technology integration in business processes and innovation strategies.

The employment landscape in AI and ML has mirrored this growth, with an extraordinary increase in job opportunities, notably a 67% year-on-year increase in demand for AI engineers. The expansion is not only in job quantity but also in the diversity of roles, reflecting the deepening penetration of AI technologies across various sectors. India now hosts over 1,340 colleges offering AI and ML specializations, predominantly in private institutions, which is indicative of a significant privatization trend in specialized AI education. This shift has bolstered the country's ability to produce a skilled workforce ready to engage with advanced technologies and complex problem-solving scenarios.

Major urban centers such as Bengalulu, Hyderabad, Delhi-NCR, Mumbai, and Chennai are identified as hubs of AI innovation and activity, each contributing uniquely to the national and global AI landscape. These cities boast a rich concentration of educational and research institutions, dynamic startup ecosystems, and substantial corporate investments in AI and ML technologies. The presence of over 150,000 AI professionals in Bengaluru alone exemplifies the scale of India's commitment to cultivating a knowledge economy centered on technological prowess.

Furthermore, the report explores the extensive growth of AI and ML applications within industry sectors such as healthcare, automotive, financial services, and more, showcasing a broad array of AI-driven innovations from diagnostic algorithms to automated customer service solutions. This wide-ranging application underscores the transformative potential of AI technologies to not only enhance business operations but also to drive societal advancements.

2.Key Findings

• Rapid Market Growth: The AI market in India is forecasted to reach USD 17 billion by 2027, growing at a CAGR of 25-35%. This expansion is largely driven by significant investments in digital content, data analytics, and supply chain optimizations.
• Surge in AI/ML Jobs: There has been a substantial increase in AI/ML job opportunities in the past year, with a specific spike in demand for AI engineers, which saw a 67% increase year-on-year.
• Educational Expansion: India currently hosts 1,340 colleges offering AI and ML specializations, predominantly private institutions, indicating a significant shift towards privatization in specialized education.
• High Talent Concentration: India has witnessed an astounding 263% increase in AI talent concentration from 2016 to 2023, positioning it as a leading nation in AI expertise globally.
• Corporate AI Growth: The corporate landscape for AI and ML in India is thriving, supported by approximately 2,240 AI-related companies and a robust job market with about 329,400 professionals employed in AI job functions.
• Educational Growth and Projections: The total number of students enrolled in engineering and technology undergraduate programs is projected to continue growing, with forecasts varying from optimistic to pessimistic scenarios based on potential technological breakthroughs and market demands.

3.Introduction

India's AI market is poised for substantial growth, with projections estimating its value to reach USD 17 billion by 2027, expanding at a compound annual growth rate (CAGR) of 25-35%. This expansion is driven by significant investments in digital content, data analytics, and supply chain optimizations. According to a joint report by Nasscom and BCG, the surge in AI investments is set to propel the demand for AI talent in India, expecting a growth rate of 15% CAGR until 2027. The technology sector in India has already experienced over 15% growth in AI/ML jobs over the past 12 months, with specific roles such as AI engineers seeing an increase of 67% year-on-year. This increasing demand highlights the vital role of AI in enhancing business processes and creating new avenues for innovation across industries.

As India gears up to harness the formidable growth of its AI market, it is crucial to spotlight the regional epicenters of AI activity that are driving this technological revolution. These major urban centers are not just the backbone of the country's AI infrastructure but also the front-runners in innovation, research, and development in the field. The significant role played by these cities in nurturing talent, attracting investments, and fostering cutting-edge research and startups catalyzes the nationwide surge in AI capabilities.

3.1 Major AI hubs in India

Bengaluru: As the premier hub of information technology and the startup capital of India, Bengaluru stands as the leading city for AI jobs. The city is home to over 150,000 AI professionals and has a rich concentration of educational and research institutions like the Indian Institute of Science (IISc) and the International Institute of Information Technology (IIIT Bangalore). Bengaluru's dynamic AI ecosystem is further enriched by over 500 startups and the presence of major global and domestic AI firms including IBM, Microsoft, Flipkart and others, making it a pivotal center for AI development and application.

Hyderabad: Recognized as a thriving center for AI innovation, Hyderabad ranks second in India for AI jobs. The city's AI talent pool exceeds 100,000 professionals, supported by renowned institutions such as the Indian Institute of Technology Hyderabad and the Centre for Cellular and Molecular Biology. Hyderabad's AI landscape is characterized by its diverse startup ecosystem, hosting over 300 startups, and significant investment from major companies like Facebook and Apple, highlighting its growing status as a hub for technological advancement.

In May 2024, The Telangana Industrial Infrastructure Corporation (TGIIC) has earmarked 200 acres for an AI City, alongside plans for a new Skill University. This development is positioned to significantly bolster Hyderabad's role as a leading destination for AI research and application, promising to enhance local economies and catalyze the growth of tech-oriented industries.

Delhi-NCR: Delhi-NCR emerges as a crucial player in the AI field, not only as a job hub but also as a center for AI policy and regulation. With over 80,000 AI professionals and institutions like the Indian Institute of Technology Delhi, the region fosters a mature startup ecosystem comprising over 400 startups. The presence of companies such as Accenture and Oracle underscores its role in shaping the national AI strategy and regulatory frameworks.

Mumbai: Mumbai, India's financial capital, is also a significant AI hub with a diverse talent pool of over 60,000 AI professionals. Educational pillars like the Indian Institute of Technology Bombay and the Tata Institute of Fundamental Research provide a strong foundation for over 200 AI startups and major corporations like Reliance and HDFC, emphasizing Mumbai's role in integrating AI across various business sectors.

Chennai: Known as the manufacturing and automotive center of India, Chennai houses over 40,000 AI professionals. Institutions like the Indian Institute of Technology Madras drive its high potential for AI education and research. With over 100 startups and the presence of companies such as Ford and Nissan, Chennai's AI sector is pivotal in advancing AI applications in manufacturing and engineering.

3.2 Scope and significance of the report

This report provides a comprehensive analysis of the current and future landscape of AI and ML talent in India, reflecting on the pivotal role these technologies are expected to play in the country's economic and technological advancements. The scope of this report encompasses:

Educational Infrastructure: Examining the growth in AI/ML-specific programs across India’s educational institutions, which are pivotal in nurturing the next generation of AI professionals.

Industry Demand: Analyzing the surge in demand for AI professionals across various sectors, fueled by increased investment and integration of AI technologies in business operations.

Employment Trends: Reviewing current employment trends, salary benchmarks, and the roles that are shaping the job market for AI and ML in India.

4.Current State of the AI/ML Talent Market

The talent landscape for AI and ML in India is experiencing a remarkable expansion as the demand for these skills intensifies across various industries. The year 2024 stands as a pivotal moment, evidenced by the sharp increase in AI/ML-specific education programs and the booming  job market in these fields. India now hosts 1,340 colleges offering specializations in AI and ML, predominantly private institutions, highlighting a significant shift towards privatization in specialized education. Furthermore, the engineering and technology sectors have witnessed a steady growth in student intake, reaching over 1.35 million in 2023-24, a consistent increase from previous years. This growth is refected in the job market, with India ranking as a prominent hub with approximately 329,400 professionals employed in AI job functions and over 3,294 specific AI and ML job openings currently available. This robust educational infrastructure and professional environment position India as a major player in the global AI/ML landscape.

4.1 AI/ML colleges and students in India

The landscape of AI/ML education in India reflects a robust and growing ecosystem capable of supporting the country's ambitions in technology leadership. The presence of a large number of private institutions has likely contributed to a diverse and adaptable educational offering, able to quickly integrate the latest technological advancements and industry demands. According to Shiksha.com there are 1340 colleges in India that offers specialization in AI & ML.

Table 1 Split of Indian AI/ML Colleges by Ownership

Source: Shiksha.com

Figure 1 Split of Indian AI/ML Colleges by Ownership

Source: Shiksha.com

According to All India Council For Technical Education (AICTE) the total no of students enrolled for Engineering and Technology undergraduate programs in India in 2023-24 are 13,50,639.

Table 2 Approved Intake for Engineering and Technology (Undergraduate)

Source: AICTE

Figure 2 Approved Intake for Engineering and Technology (Undergraduate)

Source: AICTE

Diversity of Engineering and Technology Institutes in India

India's landscape of engineering and technology education is characterized by a diverse array of institutions, with a significant majority being private. Out of the total 5,868 institutions:

Private Institutes: Dominating the landscape, private institutes number 3,757, representing the largest share. This highlights the substantial role of private entities in providing technical education in India, likely due to their flexibility in curriculum development and responsiveness to market demands.

Government Universities and Colleges: The second largest category includes government-funded institutions, totaling 1,596. These institutes are crucial for making education accessible and affordable, supporting students from various socio-economic backgrounds.

Other Categories: The remainder comprises specialized types such as Central Universities, Deemed Universities (both government and private), Government Aided Institutions, State Government and Private Universities. These institutions add to the rich tapestry of the educational ecosystem, each playing unique roles in catering to specific academic and professional needs. Notably, Deemed Universities (Private) count 192, Deemed Universities (Government) are 87, and Central Universities are 74.

This diversity not only enhances the educational choices available to students but also contributes to a competitive environment that can drive quality and innovation in engineering and technology education.

Table 3 Types of Engineering and Technology Institutes in India

Source: AICTE

Figure 3 Types of Engineering and Technology Institutes in India

Source: AICTE

Global Distribution of AI Study Programs in English

In 2023, the availability of AI-focused university programs taught in English illustrates significant international interest and investment in AI education, with the UK and the US leading. With 45 programs, India is notably progressing in its AI educational offerings, though it ranks lower compared to Western counterparts. This suggests room for growth in expanding English-language AI programs to attract a more global student body and further integrate with international academic networks.

 Table 4 Number of AI university study programs in English by Country, 2023

Source: Studyportals, 2023

Dramatic Growth in AI Talent Concentration in India

Several major economies registered substantial increases in their AI talent pools. Leading the chart, India shows an astounding 263% increase in AI talent concentration over the period from 2016 to 2023. This significant growth underscores India's strategic advancements in technology education, a robust startup ecosystem, and governmental support in fostering AI innovations.

The below chart illustrates a remarkable growth in AI talent concentration in India, with an increase of 263% between 2016 and 2023. This surge is the highest among the countries surveyed, emphasizing India's leading role in the global AI landscape. Such a substantial rise reflects India's concerted efforts to advance its AI capabilities through strategic investments in education, robust government support, and a thriving startup ecosystem.

Figure 4 Percentage Change in AI Talent Concentration by Geography 2016 vs 2023 (Top 5)

Source: LinkedIn, 2023

This dramatic increase in AI talent concentration positions India not just as a regional leader but as a global contender in shaping the future of AI technologies, highlighting its potential to remain at the forefront of AI innovation and application in the coming years.

4.2 AI Companies and Jobs in India

India's AI and ML sectors are showing vibrant growth, both in terms of employment opportunities and corporate development. As reported by Indeed, the availability of AI and ML jobs in India stands at approximately 3,294 positions. This robust job market is underpinned by a substantial installed talent base of around 420,000 professionals engaged in AI-related functions, making India the second-highest globally for such roles, as per a joint report by Nasscom and BCG. This deep pool of AI talent is a key driver for both multinational and domestic companies seeking to expand their operations in India.

According to the World Economic Forum’s Future of Jobs Report 2023, the distribution of roles within AI and ML in India shows a slightly different emphasis compared to the global averages:

• AI and ML Specialists make up 38% of such roles in India, slightly below the global average of 40%.
• Data Analysts and Scientists are at 33% in India, close to the global figure of 34%.

Table 5 Key roles for business transformation, India vs Global

Source: World Economic Forum Future of Jobs Report 2023

The relative hiring rate year-over-year, as sourced from LinkedIn for 2023, underscores the increasing demand for AI talent in India, reflecting a wider trend of digital transformation and adoption of AI across industries. This trend is expected to persist as businesses continue to recognize the value brought by AI and ML innovations in enhancing operational efficiencies and competitive advantage.

Figure 5 Relative hiring rate Y-O-Y by country, 2023

Source: LinkedIn, 2023

The corporate landscape in AI and ML in India is equally thriving. Data from Clutch.co indicates that there are 1,416 companies focusing on AI and 824 on ML, totaling 2,240 AI-related companies. This is a testament to India's growing prominence as a hub for technological innovation.

Table 6 No of AI Companies in India

Source: clutch.co

Moreover, the funding environment for AI startups in India is vigorous, as evidenced by the number of newly funded AI companies in 2023. This financial backing further stimulates the development and application of AI technologies across various sectors, contributing to the overall economic and technological advancement of the country.

Figure 6 Number of newly funded AI companies by country, 2023

Source: Quid, 2023

4.3 No of AI projects

India has emerged as a global leader in the implementation and execution of AI projects, significantly outpacing the global average. This leadership is underscored by a high engagement in AI across industries, with a notable willingness to adopt and integrate AI at the core of business strategies. According to a report by NetApp, an impressive 70% of companies in India have AI projects that are either actively running or in the planning stages. This figure is substantially higher than the global average of 49%, reflecting India’s proactive approach to embracing AI technologies. The country's strong IT infrastructure, combined with a strategic focus on digital transformation, has enabled a rapid deployment of AI projects across a wide range of sectors including finance, healthcare, and manufacturing.

In the global context, India stands as a significant contributor to AI development, as evidenced by its share of AI projects on GitHub. In 2023, India accounted for 19.01% of GitHub AI projects, trailing only slightly behind the US at 22.93%, and ahead of the combined European Union and UK at 17.93%. This data not only reflects India's active participation in the open-source community but also its role in shaping the future of AI development worldwide.

Table 7 GitHub AI Projects by Country, 2023

Source: GitHub

4.4 Skills and Qualifications in Demand

As the AI and ML sectors continue to expand in India, certain skills and qualifications have risen to the forefront, becoming particularly crucial for professionals looking to thrive in this dynamic field. India showcases a notable AI skill penetration rate of 2.75, the highest among all countries according to LinkedIn data from 2023. This rate exceeds those of other major tech hubs such as the US (2.22) and Germany (1.90), underscoring India’s rapid adoption and integration of AI capabilities within its workforce.

Table 8 AI Skill Penetration Rate, 2016-2023

Source: LinkedIn, 2023

The demand for AI/ML skills underscores the diverse applications of AI and the need for a robust talent pipeline capable of pushing the boundaries of what AI can achieve. Professionals equipped with these skills are likely to find numerous opportunities in India’s thriving technology sector, driven by the country’s leadership in AI adoption and innovation.

Figure 7 Top AI Skill 2024

Source: SimpliLearn

4.5 Talent Sourcing Options for Organizations in India

As the demand for AI and ML expertise continues to surge across industries in India, organizations are increasingly exploring varied sourcing strategies to secure the right talent. These strategies are crucial not only for filling immediate gaps but also for building a sustainable talent pipeline that aligns with the evolving technological landscape and business needs.

key methods that are particularly effective in the Indian context

• Hiring New Graduates and Experienced Professionals: Direct recruitment remains a primary strategy, involving both fresh graduates and experienced professionals. New graduates bring the latest knowledge and skills, often from specialized AI and ML programs, making them ideal for roles requiring up-to-date technical expertise. Experienced professionals, on the other hand, offer a depth of knowledge and practical experience, capable of handling complex AI projects and leading teams.
• Training Internal Resources: Upskilling existing employees is another strategic approach that organizations are adopting. This involves training internal resources in AI technologies, either through formal training programs or on-the-job training. This not only helps in filling the skills gap but also aids in retention by providing career advancement opportunities to existing employees.
• External Partnerships: Collaborating with professional services firms, consultants, or companies that specialize in AI can provide immediate access to top-tier AI expertise without the long-term costs associated with direct employment. These partnerships can be especially beneficial for project-specific work or to enhance the capabilities of internal teams.

Figure 8 Sourcing Options

Source: Secondary Research

For organizations in India, choosing the right mix of talent sourcing options is critical to harnessing the full potential of AI technologies. While direct hiring provides a solid foundation of skills, complementing this approach with training and partnerships can yield a more robust and flexible AI capability. Given the rapid pace of AI evolution, continuous learning and adaptation will be key to maintaining a competitive edge in the marketplace.

4.6 Salary Benchmarks and Compensation Trends

As the AI and ML sectors continue to expand, the demand for skilled professionals has led to distinctive trends in salary and compensation. Understanding these benchmarks is crucial for both employers and employees to navigate the job market effectively and ensure competitive and fair compensation practices.

The salary landscape for AI/ML roles varies significantly depending on the complexity of the role, the level of expertise required, and the strategic importance of AI in the organization. According to data from SimpliLearn, the average annual salaries for various AI/ML roles in 2024 are as follows:

Table 9 Average Salary for AI Jobs in 2024

Source: SimpliLearn

4.6.1. Factors Influencing Compensation

Several factors influence the compensation packages offered for AI/ML roles, including:

Experience: Generally, more experienced professionals command higher salaries. Depth of expertise, especially in niche areas like NLP or Computer Vision, can significantly impact earnings.

Location: Salary ranges vary geographically within India. Major tech hubs like Bengaluru, Hyderabad, and Pune often offer higher salaries compared to other cities, reflecting the concentration of tech companies and the cost of living in these areas.

Industry: The industry in which the AI role is based also plays a crucial role in determining salaries. For example, AI roles in the financial services industry or pharmaceuticals tend to offer higher salaries compared to sectors like retail or entertainment.

Education and Certifications: Higher educational qualifications and relevant certifications can enhance a candidate’s earning potential. Specialized certifications in AI/ML not only bolster a resume but also signify a professional’s commitment to staying updated with the latest advancements.

5.Market Overview

5.1 Key Trends Influencing Demand of AI Talent in India

The landscape of AI and ML in India is undergoing a dynamic transformation, fueled by several key trends. These trends are not only enhancing the adoption of these technologies across various sectors but are also reshaping the demand for specialized talent.

5.1.1 Gen AI Adoption

India leads the Asia Pacific region in the adoption of Generative AI (GenAI), with groundbreaking levels of engagement among both the academic and professional spheres. According to Deloitte’s "Generative AI in Asia Pacific" report, an impressive 93% of students and 83% of employees in India are actively using GenAI technologies. This widespread adoption is indicative of a robust infrastructure for AI education and a workforce that is quickly adapting to integrate AI into various operational processes. The adoption is particularly notable in creative industries and sectors requiring new content generation, leading to a surge in demand for AI specialists who are proficient in developing and managing GenAI applications.

5.1.2 Adoption of AI/ML across industries

AI and ML technologies are permeating a wide array of industries, significantly altering the job landscape. Industries such as Healthcare, Consumer Packaged Goods & Retail, Industrial & Automotive, BFSI (Banking, Financial Services, and Insurance), and Software & Technology are increasingly deploying AI solutions for a variety of applications. For instance, in healthcare, AI is utilized for disease diagnosis, patient monitoring, and health records analysis. In the BFSI sector, AI applications range from algorithmic trading to risk modeling and anomaly detection. The broad adoption across these sectors not only highlights the versatility of AI technologies but also emphasizes the growing need for a diverse range of AI roles, including Data Scientists, AI Engineers, and Business Analysts specialized in AI/ML.

Figure 9 DS and AI Jobs by Industry

Source: Secondary Research

5.1.3 Emerging technologies and their impact on talent demand

Emerging technologies, especially those integrated with AI and ML, are significantly influencing the talent demand in India. Innovations in areas such as Internet of Things (IoT), robotics, and quantum computing are creating new niches and specialties within the broader field of AI. This diversification in technology is driving the demand for skilled professionals who can bridge the gap between traditional IT roles and new AI-driven capabilities. The rapid growth in these technologies encourages continuous learning and adaptation among professionals, pushing educational institutions to update curricula and offer specialized programs that meet the evolving industry needs.

5.1.4 Government initiatives and policies

The Indian government’s initiatives and policies play a pivotal role in the AI landscape. Programs aimed at boosting AI research, development, and integration into public services are encouraging both public and private sectors to invest in AI technologies.

• Government Allocated $30.7 million in FY 24-25 for the establishment of 3 Centers of Excellence in AI.
• Government initiatives such as the National Strategy for Artificial Intelligence, Making AI Work for India, as well as INDIAai portal have fostered R&D and adoption of AI across key sectors such as healthcare, education, agriculture, and manufacturing.

These initiatives not only boost the domestic AI market but also attract foreign investment, further enhancing the growth opportunities for AI talent in India.

5.2 Challenges for AI/ML Talent Market

The rapid growth of AI and ML in India has brought about significant challenges that organizations must navigate to fully leverage the potential of these technologies. Two primary areas of concern are the prevalent skill gaps and the high turnover rates among AI professionals.

5.2.1 Talent shortage and skill gaps

One of the most pressing issues in the AI/ML talent market is the significant shortage of adequately skilled professionals. According to the "State of AI in India 2021" report, the AI skill gap in India is stark, with a considerable number of roles going unfilled due to the lack of qualified candidates:

 Figure 10 AI skill gap in India

Source: State of AI in India, 2021

These gaps are primarily due to the rapid pace of technological advancement outstripping the current educational and training programs. The industry's need for specific, advanced AI skills often outpaces the speed at which educational institutions can update curricula or individuals can acquire the necessary expertise through traditional learning pathways.

5.2.2 Retention and turnover issues

Turnover within the AI/ML sector is another significant challenge, particularly as professionals seek better opportunities to advance their careers in a highly competitive market. LinkedIn’s research highlights several factors contributing to high turnover rates:

Career Prioritization: In 2024, a staggering 88% of professionals in India are actively seeking new job roles, driven by various factors:

• Work-Life Balance: 42% of professionals are searching for better work-life balance.
• Higher Wages: 37% are motivated by the pursuit of higher salaries.
• Fair Treatment and Job Security: Many express concerns over fair treatment, respect, job security, and overall work engagement.

Management and Leadership: Effective management and supportive leadership are crucial for retention. Issues such as resource accessibility and the promotion of equal opportunities are central to employee satisfaction. Dissatisfaction with managerial approaches and a lack of advancement opportunities are frequently cited reasons for leaving a job.

6.Recommendations for Stakeholders

For Educational Institutions: To keep pace with the rapidly changing technology landscape, it is crucial to continuously update curricula and include hands-on, practical learning experiences that mirror real-world AI applications.

For Industry Leaders: Investing in training and development programs for existing employees and fostering a culture that embraces innovation and continuous learning will be key to maintaining a competitive edge.

For Policymakers: Developing policies that support the growth of AI technologies while ensuring ethical standards and data privacy is crucial. Policies should also aim to make India an attractive destination for global AI talent and investment.

7.Future Outlook

The trajectory of AI and ML in India is set to redefine the technological, economic, and societal frameworks. As we look towards the future, several key developments and strategic shifts are anticipated, which will shape the AI/ML talent landscape significantly.

7.1 Future Trends in Engineering and Technology Education Enrollment in India (2020-2026): Projections

The graph below shows historical data and forecasts for student enrollment in engineering and technology undergraduate programs in India, extending from 2020 to 2026 with three projected paths: neutral, pessimistic, and optimistic. The historical data indicates a fluctuation in enrollments over the years, with a peak in 2020 followed by a slight decline. However, moving forward from 2023, the projections diverge significantly:

Neutral Forecast: The neutral trend predicts a gradual increase in enrollment numbers, reaching approximately 14,132,804 by 2026. This suggests a steady demand for engineering and technology education, potentially driven by ongoing technological advancements and the stable growth of related industries.

Pessimistic Forecast: The pessimistic scenario shows a decrease in enrollments starting in 2024, dropping to around 12,33,404 by 2026. This could reflect concerns about job market saturation, economic downturns, or shifts in student interest towards other disciplines.

Optimistic Forecast: Contrarily, the optimistic scenario anticipates a more substantial rise, with enrollments potentially reaching up to 14,32,205 by 2026. This optimistic outlook could be supported by new technological breakthroughs, increased investment in tech education, or higher employability rates in tech sectors.

Figure 11 Forecast Engineering and Technology (Undergraduate)

Source:  AICTE

Note: Historical data taken from AICTE and liner forecast applied

7.2 India AI Market Forecast

The below chart presents a comprehensive outlook on the expected growth of various AI technologies in India over the period from 2024 to 2030, underlining the country’s dynamic expansion in this field. The AI market in India is projected to experience a compound annual growth rate (CAGR) of 28.6%, indicating a robust increase in technology adoption and market development.

 Figure 12 India AI Market Forecast by Technology, 2024-2030

Source: Statista

India's AI market is on a rapid upward trajectory, with significant investments flowing into various segments of AI technology. The forecast period up to 2030 is marked by vibrant growth across robotics, autonomous technologies, computer vision, ML, and natural language processing. Each segment contributes uniquely to the country’s technological prowess, emphasizing India’s rising prominence as a global AI hub. As these technologies continue to evolve and penetrate deeper into industrial and consumer applications, they promise not only to enhance business efficiencies but also to revolutionize how everyday tasks are performed. This ongoing growth presents substantial opportunities for investors, companies, and professionals in the AI field.

7.3 Generative AI: Driving Demand for AI/ML Engineers in India

The landscape for AI and ML engineers in India is poised for significant change, driven by the rapid ascent of Generative AI (Gen AI) technologies. Recent trends indicate a substantial increase in revenue generated from Gen AI applications, prompting a corresponding surge in investments across the AI hardware spectrum. This development is not only reshaping the technology sector but also amplifying the demand for skilled AI/ML engineers.

The proliferation of Gen AI has catalyzed a new wave of startups that specialize in these technologies. These startups are not only innovating at the product level but are also creating substantial economic value. For instance, NVIDIA, a leader in AI and computing technology, has reported a record-breaking increase in revenues, largely attributed to its robust Gen AI capabilities. In the first quarter of fiscal 2025 alone, NVIDIA announced a staggering revenue of $26.0 billion, marking an 18% increase from the previous quarter and a 262% increase from the previous year. This financial uplift is closely tied to its Gen AI-driven data center revenues, which soared to $22.6 billion in the same period, up 427% year over year.

The direct consequence of this boom in Gen AI and the necessary expansion in AI hardware is a heightened demand for AI/ML engineers. These professionals are crucial for developing, implementing, and managing AI solutions that are becoming increasingly complex. As more companies invest in AI hardware to support their Gen AI applications, the need for skilled engineers who can optimize this hardware and develop new AI models grows.

8.Conclusion

The future trajectory of AI and ML in India is set against a backdrop of exponential growth across several dimensions. As the educational institutions continue to see varying trends in enrollment for engineering and technology programs, with projections pointing to significant increases by 2026, India is simultaneously gearing up for a major expansion in its AI market, expected to grow at a compound annual growth rate of 28.6% through 2030. This dual expansion in educational capacity and market opportunities is timely, as the surging developments in Generative AI are rapidly transforming industry needs. Companies like NVIDIA have demonstrated how advancements in Gen AI not only boost revenue but also create a substantial demand for skilled AI/ML engineers capable of driving and managing these complex AI ecosystems. This increasing demand aligns perfectly with the growing number of graduates, indicating a robust future where the supply of educated professionals meets the new technological imperatives. As India continues to evolve into a global AI hub, the synergy between its educational output and the needs of its expanding high-tech industries will be crucial in maintaining its competitive edge and fulfilling the promise of AI to revolutionize both the economy and the broader societal structures. This scenario underscores the importance of strategic alignments in education, industry, and policy to harness the full potential of AI innovations, ensuring that the workforce is not only prepared to meet the demands of tomorrow but also to lead in the creation of advanced AI solutions.