India’s AI penetration factor at 3.09, highest among all G20, OECD countries: Nasscom

‘Country will require over 1 mn Data Science, AI professionals by 2024’

Published - February 17, 2023 10:36 pm IST - Bengaluru

Photo used for representation purpose only. File

Photo used for representation purpose only. File | Photo Credit: Getty Images/iStockphoto

India ranked first in terms of Artificial Intelligence (AI) skill penetration and AI talent concentration and 5th in AI scientific publications, according to a report titled, “State of Data Science and AI Skills in India: Data and the Art of Smart Intelligence, prepared by Nasscom in association with Salesforce and Draup.

In fact, India’s AI Skills Penetration Factor has been reported to be 3.09, the highest among all G20 and OECD countries. This showed that the country’s tech talent was 3X more likely to have or report AI skills than other countries, stated the report.

The country was expected to be requiring over 1 million professionals equipped with Data Science and Artificial Intelligence skill sets by 2024, said Nasscom on February 17, 2023.

The global demand for digital skills, especially for talent around Artificial Intelligence/Machine Learning, Big Data Analytics and Data Science, has doubled over the past 5 years and a growing demand for such talent in India was only a reflection of this trend, said the industry apex body.

The role of AI was also expanding, the study said, adding, organisations were planning to invest in AI to address business scenarios across functions ranging from Customer Service, HR, IT Automation to Security. More than 1900 AI-focused start-ups were providing innovative solutions, primarily in the areas of conversational AI, NLP, video analytics, disease detection, fraud prevention, and deep fakes detection, it observed.

In an assessment of the AI talent capacity, the study found that the top 5 roles: ML Engineer, Data Engineer, Data Scientist, Data Architect and DevOps Engineer, together constituted 73% of all AI job openings in India. At the same time, the two top roles: ML Engineer, Data Engineer constitute 46% of total installed talent.

Debjani Ghosh, President of NASSCOM said, “Artificial Intelligence today has become the foundational technology for the world’s digital transformation. AI-led disruption in India’s core sectors alone has a potential impact of $500 billion on India’s economy in GVA (gross value added) terms by 2026.’‘

As of August 2022, India’s total demand for DS&AI stood at 629K with an installed talent base of 416K. The current demand-supply gap in AI and Data Science stands at 51%, significantly lower than major economies such as the US, as per the study.

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