The Talent Quest: Companies' High Stakes in the AI Workforce Race

While artificial intelligence (AI) shows potential to increase profitability across most industries, its adoption is also resulting in a widening global skills gap, making upskilling workforces in AI and machine learning (ML) imperative for progress.

A report by KPMG shows that among leading businesses prioritizing technology investment for profitability, a resounding 68% identify AI and machine learning as indispensable to their short-term plans.

This means the need for AI skilling is such that it requires employees, employers, business organizations, and educational institutions all to pitch in. In short, building the AI-skilled workforce has to be a truly global effort.

Enhancing skills in AI and Machine Learning is no longer optional but a necessity

Ruban Phukan, co-founder and CEO of GoodGist

“Enhancing skills in AI and Machine Learning is no longer optional but a necessity,” Ruban Phukan, co-founder and CEO of GoodGist, an autonomous learning startup, told The Tech Panda. And the reason for this necessity, he says, is that AI saves time.

“In an era where time is the scarcest resource and the boundaries between work and personal life increasingly blur, leveraging AI to optimize time is one of the most significant steps individuals can take to boost both their professional and personal productivity. This reality underscores the importance of upskilling,” Phukan explains.

According to a Slack survey, workplace adoption of AI tools has sped up 24% over the previous quarter, with one out of four desk workers saying they have used AI tools at their work as of January 2024, as compared to one in five as of September 2023.

“Upskilling, however, transcends mere familiarity with AI usage. It’s a critical response to the profound shifts in the business landscape and job market triggered by the rapid evolution of technology,” he adds.

According to the World Economic Forum, nearly 1 billion people worldwide will need to upskill by 2030, with Korn Ferry warning that failing to do so could result in an $8.5 trillion loss in potential revenue. This is a stark backdrop to McKinsey’s projection that 87% of companies will experience a skills gap in the coming years, making upskilling not just imperative but urgent as time is of the essence here.

Job postings for AI are high, but where is the talent?

As AI gets integrated into all kinds of sectors, companies are starting to compete for AI talent. AI job postings surged 42% since ChatGPT’s debut, as Big Tech companies like Amazon, Google, Apple, and others like global logistics firm UPS, are beginning to shift resources to channel money into hiring machine learning engineers and data scientists.

Companies are actively in search of skilled professionals to fill roles from technical leadership to applied research. These include eBay, Krutrim, Accenture, Dentsu, Gramener and others. According to an AIM report on generative AI salaries in India, large companies are offering INR 1 crore or more annually for senior roles, while startups and mid-size companies are ready to give out approx. INR 30-40 lakh.

However, are these companies finding the talent they seek?

As per new research, about three in four employers are struggling to hire for the AI skills they seek even though they are willing to boost salaries 43% in marketing and 35-42% across HR, finance, and legal roles. In fact, with the acceleration in AI adoption, companies are beginning to rely on education partnerships and gig work to reach the talent required.

This is why skilling programs in AI are afoot. In March, IIM Lucknow and Emeritus launched the “Digital Transformation and AI for Business Leaders” Program to shape the next generation of AI leaders, an 11-month program designed to help leaders gain comprehensive insights into the intricacies of digital transformation and AI.

Similarly, Physics Wallah (PW), an Indian EdTech platform, launched PW Institute of Innovation (PW IOI), a four-year residential program in Computer Science and AI to address the critical challenges faced by the Indian software industry, strategically located in Bengaluru, the Silicon Valley of India.

The significant increase in the demand-supply gap for skilled AI and data science professionals further highlights the need for a comprehensive transformation in the learning approach

Vishwa Mohan, CIO at PW & President of PW IOI

Vishwa Mohan, CIO at PW & President of PW IOI, said, “It is indeed concerning that despite the exponential growth witnessed in the Indian software industry, the employability rate of Indian engineering graduates has remained relatively low, with only marginal improvement over the years. Additionally, the significant increase in the demand-supply gap for skilled AI and data science professionals further highlights the need for a comprehensive transformation in the learning approach.”

Employees want AI skilling from employers

At the same time, employee expectations are starting to include skilling and training in AI. According to a study by EPAM India, 93% of modern engineers seek upskilling opportunities in AI, Cloud, and other new-age technologies, while 92% look for opportunities to enhance their problem-solving skills to identify and implement the best solutions. Also, 91% of respondents stated that future developmental and on-job training opportunities are their top expectations from their workplaces.

Regarding their perspective for the future, 68% and 46% of modern engineers, respectively, believe that Data Analytics and AI will be the demand in the future, enabling enhancing consumer experience and collaboration.

Some companies have started working on these expectations in a bid to retain talent. For example, Findability Sciences, an enterprise AI solution has trained over 100 of its data analysts and scientists across its Boston, India, and Japan operations with intensive training in problem formulation and prompt design and engineering skills.

Empowering our team with these new skills is a strategic move that will pay dividends for our clients and the company. The future of AI is generative, and we are now more than ready to take it head-on

Mandar Kulkarni, AVP of Pre-sales

Mandar Kulkarni, AVP of Pre-sales, said, “Empowering our team with these new skills is a strategic move that will pay dividends for our clients and the company. The future of AI is generative, and we are now more than ready to take it head-on.”??

The aim is to arm its team with the latest skills to cater to the evolving requirements of its existing and incoming customers in the generative AI arena.

“This training is more than an investment in our team; it’s an investment in our clients,” says Anurag Srivastava, the Global Delivery Head.

In a tech-driven business landscape, AI and machine learning expertise empower professionals to navigate disruption and contribute significantly to short-term viability and long-term success, hence its necessity as a skill is becoming inevitable. Every ecosystem has to pool in resources to meet the AI demand that will only go up in the future.