Indian business leaders accelerate AI adoption amid talent shortage

More than half of recruiters in India say only half or fewer of the job applications they receive meet the required qualifications, underscoring the ongoing talent gap in the country
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Representative pic
Updated on
3 min read

NEW DELHI: Around 98% of Indian business leaders are accelerating their adoption of Artificial Intelligence (AI), according to a recent report by LinkedIn. However, the report also highlights a significant challenge—finding skilled talent remains a persistent issue.

The report reveals that 54% of recruiters in India say that only half or fewer of the job applications they receive meet the required qualifications, underscoring the ongoing talent gap in the country.

AI and Human Skills Remain a Hiring Challenge

LinkedIn's research shows that 54% of HR professionals in India report that only half, or fewer, of the job applications they receive meet all the required and preferred qualifications. The biggest hiring challenge for recruiters is finding candidates with the right mix of technical (61%) and soft skills (57%). Some of the hardest-to-find skills in India include technical/IT skills, such as software development and engineering (44%), AI-related skills (34%), and soft skills like communication and problem-solving (33%).

Companies Embrace ‘Selective Hiring’ in 2025

HR professionals in India also note that they receive too many applications from candidates who are not a fit for the role, with 47% of recruiters reporting this issue. As a result, companies are adopting a more selective approach to hiring in 2025. Over half of HR professionals (55%) say they would only consider reaching out to candidates who meet at least 80% of job qualifications, and 54% would hire candidates who meet this threshold.

The findings highlight the growing demand for both AI and human expertise, while emphasizing the need for more focused and selective hiring processes as the talent gap continues to widen.

Leaders Prioritize Upskilling to Bridge Talent Gap in India

As the demand for skilled talent continues to grow, over 8 in 10 (84%) HR professionals in India have identified helping employees build new skills as a top priority for 2025. A significant focus will be placed on upskilling in Artificial Intelligence (AI) (84%) and essential soft skills, such as communication andcollaboration (82%).

This focus on upskilling is further supported by Learning and Development (L&D) professionals, with 100% agreeing that soft skills—such as creativity, curiosity, and communication—are becoming just as important as technical expertise in today's workforce.

Nearly half (48%) of Indian leaders also believe that investing in learning and development, particularly for AI training, will be crucial in accelerating the adoption of AI technologies. This emphasis on both technical and soft skills reflects a growing recognition that the future workforce must be well-rounded, capable of adapting to evolving demands in both technology and collaboration.

LinkedIn Introduces AI Tools to Streamline Recruiting and Upskilling

As companies navigate a cautious economic environment, LinkedIn is introducing new AI-powered tools to help recruiters focus on more strategic, people-centric tasks. In India, nearly 37% of HR professionals spend 1–3 hours daily sorting through job applications, and 64% believe AI tools can speed up the hiring process. LinkedIn’s new Hiring Assistant automates repetitive tasks, allowing recruiters to spend more time on high-impact activities like advising hiring managers and enhancing candidate experiences.

“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,” said Ruchee Anand, India country head, talent and learning solution, at LinkedIn.

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