India, with its young workforce and rapid AI adoption, is in a prime position to spearhead the emerging ‘Human skills economy,’ as per a report by International Workplace Group (IWG). The report highlights that India leads globally in AI adoption, emphasizing the growing importance of human skills in a competitive job market. Notably, 73% of Indian workers regularly utilize AI tools, surpassing the US (45%) and the UK (29%).
Microsoft’s 2025 Work Trend Index for India reveals that 93% of business leaders in the country plan to leverage AI agents to enhance workforce capabilities in the coming 12–18 months. This shift underscores the critical need to cultivate human skills like empathy, judgment, leadership, and collaboration as businesses pivot towards human-AI collaboration.
The report underscores the significance of prioritizing human capabilities, with 90% of HR leaders globally viewing it as essential for fostering innovation. NASSCOM projects that India has the potential to upskill and train 8-10 million professionals in AI-related services by 2030. The demand for AI talent in India is expected to surge from 6 lakh to 6.5 lakh to over 1.25 million from 2022 to 2027, highlighting the necessity of blending AI proficiency with human capabilities for future workforce readiness.
Hybrid workplaces are identified as effective environments for honing empathy, judgment, and leadership skills, with 55% of HR leaders endorsing their role in skill development. The integration of tools like ChatGPT by 73% of hybrid teams and AI training offered by 82% of organizations signifies a growing trend. However, there is a call for accelerated readiness, as only 45% of HR leaders believe they are effectively bridging the skills gap, indicating room for improvement in maximizing AI utilization.
