India set to lead human skills economy as AI adoption hits 73%
Synopsis
India leads the world in workplace AI adoption at 73% — far ahead of the US and UK — yet fewer than half of HR leaders say they are effectively closing the skills gap. The IWG report's core argument: as AI reshapes every job, the sharpest competitive edge is not the technology itself but the human capabilities that surround it.
Key Takeaways
73 per cent of Indian workers regularly use AI tools, ahead of the US (45%) and UK (29%) , per the IWG report released 24 June 2025 .
93 per cent of Indian business leaders plan to deploy AI agents within 12–18 months , according to Microsoft's 2025 Work Trend Index India .
NASSCOM estimates India can reskill 8–10 million professionals in AI-related services by 2030 .
AI talent demand in India is projected to grow from 6–6.5 lakh in 2022 to over 1.25 million by 2027 .
Fewer than 45 per cent of HR leaders globally say they are effectively closing the skills gap despite 82 per cent of organisations offering AI training.
55 per cent of HR leaders say hybrid workplaces are the most effective settings for building human skills such as empathy and leadership.
India is uniquely positioned to lead the emerging 'human skills economy', according to a report released on Wednesday, 24 June 2025 by the International Workplace Group (IWG). With the world's youngest workforce and the highest rate of AI adoption globally, the country stands at the intersection of technological acceleration and human capital advantage.
India's AI Adoption Edge
Around 73 per cent of Indian workers use AI tools on a regular basis — significantly ahead of the United States at 45 per cent and the United Kingdom at 29 per cent, according to the IWG report. This places India at the forefront of workplace AI integration, even as the global race to embed artificial intelligence into daily work intensifies.
According to Microsoft's 2025 Work Trend Index India findings, 93 per cent of Indian business leaders plan to deploy AI agents to extend workforce capabilities within the next 12 to 18 months. This rapid acceleration, the report argues, makes human capabilities — empathy, judgement, leadership, and collaboration — more critical than ever as organisations redesign work around human-AI collaboration.
The Reskilling Imperative
Industry body NASSCOM, cited in the report, estimates that India has the capacity to reskill and develop between 8 and 10 million professionals in AI-related services by 2030. Meanwhile, demand for AI talent in India is projected to more than double — rising from 6–6.5 lakh in 2022 to over 1.25 million by 2027.
The report cautions, however, that a shortage of qualified professionals could slow innovation and growth. This makes the combination of AI fluency and distinctly human capabilities central to India's long-term workforce readiness.
HR Leaders Sound the Alarm
Globally, around 90 per cent of HR leaders view a failure to prioritise human capabilities as a risk to innovation. Yet the gap between intent and execution remains wide: fewer than 45 per cent of HR leaders say they are effectively closing the skills gap, suggesting a significant number of organisations are still lagging in translating AI investment into measurable workforce outcomes.
Around 82 per cent of organisations currently offer AI training, and 73 per cent of hybrid teams are already using tools such as ChatGPT. Despite this, HR leaders say readiness must accelerate considerably to keep pace with adoption rates.
Why Hybrid Work Matters Here
The IWG report also highlights the role of hybrid work environments in building human skills. Some 55 per cent of HR leaders identified hybrid workplaces as among the most effective settings for developing empathy, judgement, and leadership. These environments, the report notes, are where trust, mentorship, collaboration, and decision-making are actively reinforced — qualities that AI cannot replicate.
This comes amid a broader global conversation about the future of work, where the automation of routine tasks is pushing organisations to double down on capabilities that remain distinctly human. For India, with its demographic dividend and accelerating AI adoption, the opportunity to define what the human skills economy looks like may be larger than for any other nation.
Point of View
But India has a history of setting large workforce targets that outpace institutional delivery. The real question is not whether India can lead the human skills economy — the demographic case is self-evident — but whether its training infrastructure, dominated by short-cycle certification programmes, can produce the depth of judgement and leadership that AI genuinely cannot replicate.
NationPress
24 Jun 2026
Frequently Asked Questions
What is the 'human skills economy' and why is India positioned to lead it?
The 'human skills economy' refers to a labour market where distinctly human capabilities — empathy, judgement, leadership, and collaboration — become the primary source of competitive advantage as AI automates routine tasks. India is considered well-positioned because it combines the world's youngest workforce with the highest global rate of AI adoption at 73%, according to the IWG report.
What does the IWG report say about India's AI adoption rate?
The IWG report, released on 24 June 2025, found that 73 per cent of Indian workers regularly use AI tools — well ahead of the United States at 45 per cent and the United Kingdom at 29 per cent. This makes India the global leader in workplace AI adoption.
How many AI professionals can India produce by 2030?
Industry body NASSCOM, cited in the IWG report, estimates that India has the capacity to reskill and develop between 8 and 10 million professionals in AI-related services by 2030. AI talent demand is separately projected to grow from 6–6.5 lakh in 2022 to over 1.25 million by 2027.
Why are human skills becoming more important despite rising AI adoption?
As AI takes over routine and process-driven tasks, capabilities that machines cannot replicate — such as empathy, leadership, and collaborative decision-making — become the differentiating factor for individuals and organisations. Globally, 90 per cent of HR leaders view a failure to prioritise these human capabilities as a direct risk to innovation, according to the report.
What role do hybrid workplaces play in building human skills?
The IWG report found that 55 per cent of HR leaders consider hybrid workplaces among the most effective environments for developing empathy, judgement, and leadership. Hybrid settings are seen as spaces where trust, mentorship, and real-time decision-making are actively practised — skills that remote-only or fully in-office environments may not develop as effectively.
