Is Your Business Ready? Navigating the Human Impact of AI Adoption and Workforce Displacement in India

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Is Your Business Ready? Navigating the Human Impact of AI Adoption and Workforce Displacement in India

New Delhi: Generative AI (GenAI) has moved from being just a buzzword to a vital part of many Indian companies’ strategies. A recent LinkedIn report shows that 98% of business leaders in India plan to adopt AI by the end of 2025. However, this rapid growth brings along a serious issue: the widening skills gap and the risk of displacing workers who lack AI skills.

The Skills Gap

According to the report, 54% of HR professionals in India say that fewer than half of job applicants are qualified. The skills most in demand include:

  • Software development and engineering (44% struggle to find this skill)
  • AI-related skills (34% find this challenging)
  • Soft skills like communication and problem-solving (33% are hard to find)

This gap tells recruiters that they need to focus on training. Over 55% of HR professionals say they prefer candidates with at least 80% of the required skills.

Ethics and Regulations in AI

Karnika Seth, a Cyberlaw expert, emphasizes that AI is not just a business tool but also requires ethical guidelines and compliance. “There’s high demand for AI knowledge,” she says. “Companies want individuals who can integrate AI into their processes effectively and ethically.” Discussions on AI ethics are gaining traction globally, and India is part of this conversation. The NITI Aayog’s AI framework and the new Digital Personal Data Protection Act highlight the need for accountability when using AI.

Moreover, India is leading in global AI development through initiatives like the Digital AI Mission, which provides funding for open-source language model projects. Yet, to effectively meet market demands, India needs well-structured AI training programs, not just experience.

The Human Cost of AI

While there’s a demand for AI-skilled workers, many employees face job displacement as roles evolve. Workers without AI knowledge are often left uncertain about their future. To bridge the gap between those skilled in AI and those who are not, reskilling is crucial. Ruchee Anand, who leads LinkedIn’s Talent and Learning Solutions in India, stresses the importance of combining AI capabilities with human skills. “It’s not enough to adopt AI; organizations must learn how to use it effectively,” she explains. Many companies invest in AI tools but lack the skills to use them, which can hinder their potential.

In today’s tech-focused environment, soft skills like creativity, communication, and teamwork are just as vital as technical knowledge.

The Shift to Selective Hiring

As the demand for AI skills continues to rise, companies are becoming more selective in their hiring. This trend could disadvantage many workers who lack AI experience, making ongoing training and reskilling essential for the workforce’s future.



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ARTIFICIAL INTELLIGENCE, AI SKILLS, GENAI, AI, 98 PER CENT OF INDIAN BUSINESS LEADERS ARE AIMING FOR AI ADOPTION BY END OF 2025