There is a significant gap between the existing AI skill set and the rising demand for AI talent in a world increasingly driven by the new-age technology, with this expected to surge dramatically in the near future. India’s AI sector alone could surpass 2.3 million job openings by 2027, while the AI talent pool is expected to grow to around 1.2 million, according to the latest research shared by Bain & Co.

This represents an opportunity to reskill more than 1 million workers in the country alone, it said. As AI becomes smarter and more efficient, businesses are facing a growing shortage of skilled professionals as they race to implement AI. Bain's data reveals AI-related job postings have surged by 21% annually since 2019, with compensation growing 11% annually over the same period. Yet the number of qualified candidates has not kept pace, creating a widening talent gap that is slowing AI adoption.

“AI is at the forefront of corporate transformation, but without the right talent, businesses will struggle to move from ambition to implementation,” said Sarah Elk, Americas head of AI, Insights, and Solutions at Bain & Company. “Executives see the growing AI talent gap as a major roadblock to innovation, limiting businesses’ ability to scale and compete in an AI-driven world. Companies navigating this increasingly competitive hiring landscape need to take action now, upskilling existing teams, expanding hiring strategies, and rethinking ways to attract and retain AI talent.”

“India has a unique opportunity to position itself as a global AI talent hub. However, by 2027, the job openings in AI are expected to be 1.5–2x of the talent availability. The challenge—and opportunity—lies in reskilling and upskilling a significant portion of the existing talent base on emerging technology tools and skillsets,” said Saikat Banerjee, Partner and leader in Bain & Company’s AI, Insights, and Solutions practice in India. He further added, “The AI talent shortage is a significant challenge, but not invincible. Addressing it requires a fundamental shift in how businesses attract, develop, and retain AI talent. Companies need to move beyond traditional hiring approaches, prioritize continuous upskilling, and foster an innovation-driven ecosystem.”

Bain’s study finds nearly half (44%) of executives cite a lack of in-house AI expertise as a key barrier to implementing generative AI. This talent gap is expected to persist through at least 2027, with its impact varying in severity across global markets:

Bain's data for advanced economies show that in the US alone, 1 in 2 AI jobs could be left unfilled by 2027. Bain projects AI job demand could reach up to more than 1.3 million in the US over the next two years, while supply is on track to hit less than 645,000—implying the need to reskill up to 700,000 US workers.

Germany could see the biggest AI talent gap, with around 70% of AI jobs unfilled by 2027. With an estimated 62,000 AI professionals available to fill 190,000 – 219,000 job openings in 2027, there is a clear opportunity for reskilling employees in Germany.

United Kingdom may see talent shortfalls of more than 50%, with just 105,000 AI workers available to fill up to 255,000 AI jobs in 2027. Australia could see a shortfall of more than 60,000 AI professionals by 2027, with just 84,000 AI specialists available to fill up to 146,000 jobs, shows the Bain data.