Gen Z Leads India’s AI Skills Revolution Amid a Growing Talent Crisis

Gen Z is driving India’s AI skills revolution as the nation faces a major talent gap. Discover how young professionals are reshaping the tech workforce.

Gen Z Driving India’s AI Skills Revolution

TheInterviewTimes.com | New Delhi | November5, 2025 — India’s workforce is undergoing a dramatic transformation as Gen Z emerges as the primary force behind the nation’s AI skills revolution. A new report by global workforce platform Deel shows that 60% of India’s Gen Z employees are actively upskilling in artificial intelligence (AI) and data analytics—signaling a major generational shift amid a severe shortage of qualified tech talent.

According to the Deel Skilling and Upskilling Survey 2025, 61% of Gen Z workers aged 28 and under are pursuing new learning opportunities, with over half focusing on AI skills. The enthusiasm for upskilling is strongest among recent graduates—63% of whom are enhancing their capabilities, with 57% targeting AI specifically. In contrast, only 40% of millennials and 38% of Gen X professionals reported similar efforts in AI training.

Gen Z Prioritizes Learning Over Job Stability

The study highlights a crucial workplace trend: Gen Z values learning and growth opportunities more than traditional job stability. About 61% of respondents from this generation identified access to skill development as their top reason to remain with an employer. Unlike older generations, Gen Z professionals are highly driven to stay relevant in a rapidly evolving tech landscape.

Two-thirds of Gen Z employees believe the skills they acquire today will sustain their employability for at least the next five years—compared to less than half of millennials and only one-third of Gen X professionals.

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India’s AI Talent Shortage Intensifies

Despite the proactive attitude of Gen Z, India’s AI industry is grappling with a severe skills gap. Industry data reveals that for every ten generative AI job openings, only one qualified engineer is available—creating a staggering 53% talent shortage expected to worsen by 2026.

This shortage is especially pressing in Global Capability Centres (GCCs), which are set to generate up to 25% of new tech jobs next year. However, many centers face challenges in sourcing employees with the right AI and data expertise.

Only 31% of Indian tech professionals feel adequately trained to leverage AI tools effectively. Meanwhile, the Indian AI market is projected to hit $28.8 billion by the end of 2025, growing at an annual rate of 45%. This exponential growth underscores the urgency of expanding AI literacy and professional training.

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Upskilling Initiatives Empowering Gen Z

Recognizing this gap, several large-scale initiatives have been launched. In October, EY and Microsoft introduced the AI Skills Passport, a free, multilingual online course aimed at individuals aged 16 and above to democratize AI education nationwide.

Similarly, the Indian government’s SOAR (Skilling for AI Readiness) program—integrated into the Pradhan Mantri Kaushal Vikas Yojana 4.0—has started embedding AI competencies at the grassroots level, ensuring broader access to emerging technology education.

However, challenges persist. Deel’s survey indicates that Gen Z cites cost as the main barrier to learning new skills, while millennials struggle with time limitations and Gen X employees face inadequate employer support. These differing obstacles reveal the complexity of designing inclusive, scalable solutions to build India’s digital workforce.

The Road Ahead for Gen Z and India’s AI Future

As India strives to become a global AI powerhouse, its success will depend heavily on the innovation and determination of Gen Z professionals. Their willingness to learn, adapt, and lead in the AI revolution sets the tone for the nation’s digital future.

To sustain this momentum, coordinated action is needed among government, industry, and academia to nurture AI talent at every level. The Gen Z generation has the potential to redefine India’s global competitiveness—provided systemic barriers to education and accessibility are addressed.

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Conclusion: Gen Z at the Core of India’s AI Growth

With Gen Z leading India’s AI transformation, the country stands at a pivotal moment. The next decade will determine whether this generation’s passion for innovation can overcome the structural talent deficit that threatens to slow progress.

India’s AI skills revolution, driven by Gen Z, is not just a technological movement—it’s a generational awakening shaping the nation’s economic destiny.