AI skills eclipse engg, IT as top talent gap in India
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New Delhi: AI skills have overtaken traditional engineering and IT capabilities for the first time, emerging as the most difficult skills for employers to find, a report said on Friday.
Over eight out of 10 employers, or 82 per cent, in India reported difficulty in finding skilled talent in 2026, according to a report by ManpowerGroup. Talent pressure in India remains significantly above the global average of 72 per cent, though slightly eased from 74 per cent in 2025.
AI literacy and AI model development were cited among the hardest skills to source. The report noted that the most difficult skills to find worldwide now include AI literacy, AI model development, engineering, sales and marketing, and manufacturing and production, underscoring the global scarcity of AI capabilities. India ranked among the most talent-constrained markets globally, alongside Slovakia (87 per cent), Greece (84 per cent) and Japan (84 per cent).
The study, based on responses from over 39,000 employers across 41 countries, pointed to a widening structural skills mismatch as organisations struggle to secure both advanced technical expertise and essential soft skills. “India’s talent shortage at 82 per cent signals a structural transformation in the labour market rather than a cyclical one,” said Sandeep Gulati, Managing Director, India and Middle East, ManpowerGroup India.

