Indian Businesses Speed Up AI Adoption, but Talent Shortage Persists: Report To bridge this talent gap, 84% of HR professionals in India rank AI training as a top focus, while 82% emphasise soft skills like communication and collaboration

As artificial intelligence (AI) becomes a strategic priority for Indian businesses, the challenge of finding skilled talent continues to hinder its adoption. According to the recent LinkedIn report, 98 per cent of business leaders in India are focused on accelerating AI implementation in 2025. However, recruiters face difficulties in sourcing candidates with the right mix of technical and soft skills, leading to more selective hiring practices.

The report reveals that 54 per cent of HR professionals in India receive job applications where only half or fewer meet the required qualifications. Technical skills such as software development and engineering (44 per cent) and AI expertise (34 per cent) are particularly difficult to find. Additionally, soft skills like communication and problem-solving (33 per cent) remain a key concern, making it challenging to strike the right balance between AI capabilities and human expertise.

With a growing mismatch between job requirements and available talent, companies are becoming increasingly selective in their hiring. Nearly half (47 per cent) of HR professionals report receiving an overwhelming number of applications from unqualified candidates, while 54 per cent say they now reach out only to applicants who meet at least 80 per cent of job qualifications.

To bridge this talent gap, organizations are prioritising employee upskilling. The report states that 84 per cent of HR professionals in India rank AI training as a top focus, while 82 per cent emphasise soft skills like communication and collaboration. All surveyed learning and development (L&D) professionals agree that soft skills such as creativity and curiosity are becoming as critical as technical expertise.

Nearly 34 per cent of recruiters in India spend up to three hours daily reviewing job applications. AI tools can play a major role in streamlining this process. Several companies, including LinkedIn, have introduced AI-powered recruitment tools to help HR teams manage their workload more efficiently.

"AI is reshaping how we hire and develop talent, but the real unlock isn't just adopting AI—it's making it work for the business. Too often, companies pour resources into AI tools without the right talent to unlock their full potential, turning a game-changing opportunity into a missed one. To break this cycle, businesses need to approach hiring with a skills-first mindset—because while AI will be the tool that unlocks innovation, it's human skills like creativity, communication, and collaboration that will help companies truly stay ahead of change," said Ruchee Anand, India Country Head, Talent & Learning Solutions, LinkedIn.