The trend of adopting Artificial Intelligence (AI) and automation is now increasing rapidly in India. Companies are adopting new technologies to make their operations faster and more cost-effective; However, amidst this change, a big challenge seems to be looming over the employees. The recently released SHRM India Skill Intelligence Report 2026 warns that millions of jobs could be affected over the next few years – especially in sectors where work is highly repetitive.
According to the report, jobs in areas such as back-office operations, data management and customer service are most vulnerable to changes from AI. It is estimated that automation in back-office roles could increase by approximately 28 percent over the next three years. Also, about 24 percent of jobs related to data and reporting are at risk. In the customer service sector, about 21 percent of jobs may be replaced by the increased use of AI chatbots and automated systems.
For this report, information was collected from around 198 senior HR and education experts from across the country. These experts believe that India has a distinct advantage in having the youngest workforce in the world; However, if employees are not trained in new technology in a timely manner, this opportunity can quickly turn into a major challenge.
The report cites India’s inadequate skills training infrastructure as a major cause for concern. Statistics show that only 2.3 percent of the country’s workforce receives formal training – much lower than the figures for many developed countries. As a result, a large portion of India’s workforce is not yet prepared to meet the demands of AI and the digital age.
The report further states that although companies are paying for training, their current methods are not as effective. Most training budgets are being spent on online courses and classroom-based learning, while there is a lack of investment in practical, hands-on learning experiences. As a result, employees are failing to gain the practical experience and skills needed to effectively perform their actual job responsibilities.
In efforts to adopt AI, companies face not only technical barriers, but also significant leadership and investment challenges. Many companies are still hesitant to make big investments in AI. Some believe that getting proper returns on investment is still a big challenge. Additionally, concerns have also been raised about the lack of green and sustainability skills.