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AI, digital skills, and the learning power of youth have made India a leader in the new skill economy. If this pace continues, this country could become the world's number one country in terms of AI talent in the coming years.

If there's one thing that's changing the fastest in today's world, it's Artificial Intelligence (AI). Every sector, be it banking, manufacturing, healthcare, or education, has now become digital and AI-enabled. This begs the question: which country is emerging as the biggest AI hub of this new era? AI, digital skills, and the learning power of youth have made India a leader in the new skill economy. If this pace continues, this country could become the world's number one country in terms of AI talent in the coming years. So, let's find out which country has the most AI talent and where India rank in this regard.

Which country has the highest AI talent?

According to the India Skills Report 2026, India is now one of the leading countries in the world in terms of AI skills. This report was prepared by ETS in collaboration with CII (Confederation of Indian Industry), AICTE (All India Council for Technical Education), and AIU (Association of Indian Universities).

This report collected data from over 100,000 candidates and over 1,000 companies. AI is now considered a baseline skill in India. Just as knowledge of operating a computer or using the internet was previously required, knowledge of AI is now essential for almost every digital job.

AI and Skilling Increase Employability

According to the report, India's employability has increased from 54.81 percent in 2024 to 56.35 percent in 2025. This means that more people than ever are becoming skilled to meet the needs of industries. Three major reasons behind this are rapid training in AI and digital skills, increasing participation of youth from Tier-2 and Tier-3 cities, and the growing role of women, whose employability rate has reached 54 percent, which is higher than that of men.

Where does India stand in this regard?

According to the report, the number of AI professionals in India will reach 1.25 million by 2027. More than 90 percent of employees are now using generative AI tools in some form. Additionally, 70 percent of companies in the IT sector and 50 percent of companies in the banking, finance, and insurance sector (BFSI) are using AI-based systems for recruitment.

According to the report, companies' hiring intent has increased from 29 percent to 40 percent in the next financial year 2026-27. The largest number of jobs are expected to be created in sectors such as technology, banking and fintech, manufacturing, renewable energy, and healthcare. The BFSI and fintech sectors alone are expected to generate 250,000 new jobs by 2030.

Education and Policy Changes

India's gig and freelance workforce is steadily growing. This figure is projected to reach 23.5 million by 2030. Project-based hiring increased by 38 percent last year alone. While 72 percent of jobs are permanent, gig and third-party hiring has increased by 16 percent. This indicates that the Indian economy is gradually moving towards a flexible work model.

New initiatives by AICTE, such as Project PRACTICE and AI and Climate Cells, have reshaped technical education. Education is no longer limited to textbooks; instead, focus is placed on project-based learning, collaboration with industry, and stackable certificates. The report says that if India wants to maintain its skill power in the future, then it will have to connect policy, education and industry together.