Over 40% of India’s IT, gig workforce uses AI tools; Kochi emerging as major employability centre: Report

New Delhi: More than 40 per cent of India’s IT and gig workforce now relies on artificial intelligence (AI) tools for automation, analytics, and creative production, according to the latest India Skills Report 2026.

The report, released by the Educational Testing Service (ETS) in association with the Confederation of Indian Industry (CII), the All India Council for Technical Education (AICTE), and the Association of Indian Universities (AIU), highlights a steady improvement in the country's employability levels — which have climbed to 56.35 per cent from 54.81 per cent in 2025.

Based on data collected from over one lakh candidates and 1,000 employers across seven sectors, the report points to India’s growing readiness for the AI era. It notes that the country's demographic advantage — with a workforce averaging 28.4 years in age — offers both “urgency and opportunity,” and that “women have surpassed men in job readiness for the first time.”

"To sustain its rise as the world's skills capital, the nation must scale AI-ready learning ecosystems that empower every learner, from schoolchildren to senior professionals," the report stated

It also lauded initiatives like the National Education Policy (NEP) 2020, SOAR (Skilling for AI Readiness), and the Skill India Digital Mission as “foundational for the country's growth,” while cautioning that “true transformation will need deeper alignment across academia, industry, and government.”

The report further observed that Tier-2 and Tier-3 cities such as Lucknow, Kochi, and Chandigarh are emerging as strong employability hubs, helping narrow the urban–rural skill divide. “Employability in India has improved to 56.35 pc, up from 54.81 pc in 2025, showing consistent progress in job readiness and skill adaptability,” it said.

Female employability was found to be at 54 per cent, surpassing male employability at 51.5 per cent — a trend driven by hybrid work models and digital skilling initiatives.

According to the findings, India now accounts for 16 per cent of the world’s AI talent, which is projected to reach 1.25 million professionals by 2027. More than 90 per cent of employees across sectors reportedly use Generative AI tools, with 70 per cent of IT professionals and half of those in banking, financial services, and insurance (BFSI) firms having adopted AI-based recruitment systems.

“With 71 per cent of Gen Z freelancers receiving AI training, India is pioneering a new hybrid model of human-AI collaboration, balancing technical precision with creative problem-solving,” the report added.

The hiring intent for FY 2026–27 stands at 40 per cent, up from 29 per cent in the previous year, led by sustained demand in technology, BFSI, manufacturing, renewable energy, and healthcare.

The BFSI and fintech sectors alone are expected to create 2.5 lakh new jobs by 2030, growing at an annual rate of 8.7 per cent.

"By 2030, global labour shortages are projected to reach 85 million, while India is forecast to supply a surplus of 45 million skilled professionals, positioning it as the world's primary talent hub," the report said.