New Delhi is witnessing a seismic shift in the job market. For the first time, artificial intelligence skills have overtaken traditional engineering and IT capabilities in demand, according to a landmark report from ManpowerGroup released on Friday. This marks a pivotal moment as AI competencies now top the list of the hardest skills for employers to source.
The report reveals that a staggering 82% of Indian employers anticipate difficulties in finding skilled talent by 2026, far exceeding the global average of 72%. Skills like AI literacy and AI model development are pinpointed as the most challenging to acquire. This talent crunch has intensified compared to last year, underscoring the rapid evolution of workforce needs.
Globally, the scarcest skills span AI literacy, model development, engineering, sales and marketing, as well as manufacturing and production. India leads the pack among nations facing acute talent shortages, followed by Slovakia (87%), Greece (84%), and Japan (84%).
Conducted across 41 countries with over 39,000 employers, the survey notes a slight global easing in recruitment challenges—from 74% in 2025 projections to 72%—yet competition for AI expertise remains fierce. Organizations grapple not just with technical gaps but also soft skills deficits, exacerbating skill mismatches.
Sandeep Gulati, Managing Director of ManpowerGroup India and Middle East, emphasized, ‘The 82% talent shortage in India signals a structural, not temporary, shift in the labor market.’ Companies are responding aggressively: 37% focus on upskilling and reskilling, 35% seek new talent pools, 26% offer flexible hours, and 25% provide location flexibility.
This shortage permeates all sectors, hitting hardest in automobiles (94%), information, finance, or insurance (85%), professional, scientific and technical services, construction and real estate, and tech/IT services (84%). As India positions itself as a global tech hub, bridging this AI skills gap will be crucial for sustained economic growth.