AI Skill Gap Identified as Major Challenge for Indian Firms: SHRM Report
AI Skill Gap a Top Constraint for 45% of Indian Firms: SHRM Report
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A recent report by the Society for Human Resource Management (SHRM) reveals that nearly 45% of organizations in India see a lack of artificial intelligence and digital skills as their biggest workforce challenge. Despite a large working-age population, only 2.3% of the workforce receives formal training, highlighting a significant skills gap that could hinder AI adoption.
- 01The SHRM India Skill Intelligence Report 2026 indicates that 54% of organizations express low urgency regarding AI investment.
- 0244% of companies cite leadership and return-on-investment gaps as major barriers to AI adoption.
- 03Only 2.3% of India's workforce receives formal training, significantly lower than global averages such as 68% in the UK.
- 04Sustainability skills represent a significant gap, with 41% of organizations lacking adequate capabilities in green and ESG (Environmental, Social, and Governance) areas.
- 05Achal Khanna, CEO of SHRM APAC, emphasizes the need for organizations to build future-ready skills to remain competitive.
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According to the SHRM India Skill Intelligence Report 2026, nearly 45% of organizations in India identify a lack of artificial intelligence, digital, and data skills as their most significant workforce constraint. Alarmingly, 54% of these organizations report a moderate to low urgency in investing in AI technology. This skills gap exists despite India having a large working-age population, with 62% of its citizens falling within this demographic. The report also highlights that only 2.3% of India's workforce receives formal training, a stark contrast to global peers like the UK (68%) and South Korea (96%). Furthermore, 44% of companies cite leadership and return-on-investment gaps as barriers to AI adoption, while 41% struggle with sustainability skills, particularly in green and ESG capabilities. Achal Khanna, CEO of SHRM APAC, underscores the urgency for organizations to invest in building future-ready skills as they navigate the challenges of workforce transformation.
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The skills gap in AI and digital capabilities could hinder the growth and competitiveness of Indian firms, impacting their ability to innovate and adopt new technologies.
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