India's business landscape is experiencing a seismic shift as HR leaders from various industries are increasing investments in both artificial intelligence (AI) talent and essential soft skills. While AI adoption is growing at a record pace, businesses realize that technical expertise is no longer sufficient-human skills such as communication, creativity, and collaboration are equally essential. This two-pronged approach is redefining recruitment, up-skilling, and talent retention strategies as companies gear up for the future of work.
AI Adoption Soars, but Talent Gap Looms
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98% of Indian business executives have set AI adoption as a top priority for 2025, integrating AI into fundamental business strategies.
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Still, more than half of recruiters indicate that less than 50% of candidates apply for available job openings, particularly for software development and AI-related skills such as Python and large language models.
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Only 44% of hiring professionals get sufficient numbers of candidates with core computer programming skills, and only 34% get those who are skilled in AI technologies.
Soft Skills: The Human Advantage
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84% of HR professionals are laying emphasis on upskilling in AI, and 82% on soft skills like communication, teamwork, creativity, and problem-solving.
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Soft skills today are as valuable as technical know-how, with all the Learning & Development (L&D) professionals surveyed agreeing that they play a crucial part in the workforce of today.
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Communication ranks as the most sought-after skill in 2024 in both India and the Asia-Pacific region.
Upskilling Initiatives Gain Momentum
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Almost 94% of Indian businesses are actively upskilling staff in reaction to AI developments, with a strong focus on both online training and hands-on testing of generative AI tools.
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53% provide online training, and 54% offer a chance for employees to experiment with AI tools.
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Chances of internal mobility and career development are being used to recruit and retain top talent, with 48% of recruitment managers providing such opportunities.
Hiring Trends: Skills Over Pedigree
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A "skills-first approach" is something companies are embracing, where candidates' skills take precedence over the usual qualifications or experience.
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75% of Indian leaders would not recruit an employee who lacked AI skills, and 80% would recruit a less experienced candidate with AI skills than a more experienced candidate who lacked those skills.
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More than half of HR professionals now require candidates to meet at least 80% of job qualifications, signaling a shift toward quality over quantity in hiring.
AI-Powered Tools Transform Recruitment
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LinkedIn and other platforms are rolling out AI-powered tools, such as the Hiring Assistant, to automate repetitive tasks and allow recruiters to focus on strategic, people-centric activities.
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64% of HR managers think AI technology can accelerate and simplify recruitment, and 37% spend three hours a day shortlisting applicants-a task now being automated by AI.
The Road Ahead: Balancing Tech and Humanity
India's future workforce will need an equilibrium of AI literacy and human skills to succeed in the era of accelerating technology.
While job skills are anticipated to shift by 68% worldwide by 2030, ongoing learning and flexibility will become essential for the organization as well as employees.
Sources: BW People, Economic Times, Times of India, Business Standard, New Indian Express, Financial Express
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