“AI is going to change the world, but we must ensure it changes the world for the better.” - Satya Nadella, CEO, Microsoft
Shifting skills for a transforming workforce
India is witnessing a major shift in job readiness as highlighted in the India Skills Report 2026. Employability has grown to 56.35 per cent, reflecting how workers are adapting to rapid technological and economic changes. With over 1,000 organisations contributing data, the report shows that India’s workforce is becoming more agile and better prepared for modern demands.
Rising role of AI and the expanding gig economy
India now hosts around 16 per cent of the global AI workforce, with more than 600,000 professionals and the number expected to double by 2027. The freelance and digital economy continues to grow and may reach 23.5 million gig workers by 2030. Companies are increasingly using AI-led recruitment, hybrid work models and data-driven HR practices, with nearly nine out of ten employees interacting with generative AI tools in some form.
Vulnerabilities in the new work order
Despite flexibility, gig and platform workers still lack access to formal labour protections such as insurance or provident fund support. The report calls for portable benefits and strong data protection norms to address this gap. Skill divides are also widening because only a small set of firms offer AI training at scale, leaving many workers behind in digital literacy.
Disparities that limit equitable growth
Women’s employability now stands at 50.86 per cent, nearly matching men, yet their access to fast-growing sectors like technology and manufacturing remains limited. Regional gaps persist, with states like Uttar Pradesh and Karnataka performing strongly, while Bihar and the Northeast lag behind. Policies must focus on both equity and efficiency to ensure shared progress.
Policy priorities for a changing employment landscape
A modern labour framework that recognises gig and remote work is essential. Ethical AI governance, transparency in recruitment and stronger education-to-career pathways will be crucial. Classrooms must increasingly align with industry needs through project-based, practical learning.
Summary
India’s workforce is evolving quickly with rising AI adoption, expanding gig employment and improved employability. Yet challenges remain in labour protections, digital skills and regional and gender disparities. Policy reform and inclusive skilling are central to shaping a fair and future-ready labour market.
Food for thought
As AI use grows across industries, how do we ensure that productivity gains also translate into fair and secure work for all?
AI concept to learn: AI-led recruitment
AI-led recruitment uses algorithms to screen applications, match candidates to roles and analyse skills more efficiently. For beginners, it is useful to understand that these systems rely on data patterns rather than human intuition. Learning how these tools work helps individuals prepare better for modern hiring processes.
[The Billion Hopes Research Team shares the latest AI updates for learning and awareness. Various sources are used. All copyrights acknowledged. This is not a professional, financial, personal or medical advice. Please consult domain experts before making decisions. Feedback welcome!]
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