Indian Enterprises Use AI But Don’t Know How to Harness It: Study

Indian employees are eager to use Artificial Intelligence (AI) at work, but a major lack of clear guidance and confidence is widening a skills gap that threatens workforce readiness, according to new research from Udemy and YouGov.

The report, surveying over 1,000 internet-using professionals in India aged 18 to 70, found that nearly three-quarters are already integrating AI tools in their roles. However, only 30% feel confident in their AI capabilities, while 61% say their employers fail to provide clear instructions on how to effectively use AI in daily work. This growing “enablement gap” signals a disconnect between AI adoption and actual skill proficiency in Indian workplaces. (See: Why 40% of Enterprises Will Face AI Disaster by 2030 and How to Stop It)

Most employees believe acquiring AI skills is primarily their own responsibility, exposing institutional shortcomings in preparing the workforce for AI-driven transformation. “The AI train is at the station, but people are hesitating to board,” said Hugo Sarrazin, Udemy’s CEO, warning that psychological and organizational barriers must be tackled swiftly to secure workers’ futures and companies’ competitiveness.

The study also highlights a significant perception gap between employees and hiring managers on entry-level job requirements. While 67% of Indian workers see a college degree as essential, only 32% of hiring managers consider degrees important, instead placing equal emphasis on demonstrated skills. This mismatch partly explains why many recent graduates struggle to find jobs matching their qualifications amid rapidly evolving skill demands.

Indian professionals exhibited cautious optimism toward AI’s societal impact: 45% expect AI to improve their lives, but 32% recognize both benefits and risks. Despite AI’s transformative potential, a majority still lack consistent, hands-on training integrated into their workflow, underscoring the need for upskilling programs embedded directly into daily tasks.

Beyond technical skills, hiring managers identified communication and soft skills as critical deficiencies among entry-level workers, a gap frequently underestimated by employees themselves. Addressing these blind spots will be key for workforce competitiveness in a market increasingly driven by hands-on capabilities rather than formal credentials.

Udemy advocates for organizational efforts to weave AI training into work processes, use real-world examples to reduce skepticism, and motivate personalized skill development. Companies that proactively close these gaps could gain a decisive advantage as AI reshapes industries and job roles.

The findings spotlight a critical juncture for India’s workforce, urging employers and employees alike to move beyond awareness to actionable skills-building. Without closing this readiness gap, the country risks being left behind in the evolving AI economy. 

The enthusiasm for AI is palpable, but without clear, hands-on training embedded into work routines, this promise risks under-delivery. To fully leverage AI’s potential, organizations must integrate upskilling guidance and bridge psychological and institutional barriers.

The lack of synergy between employee expectations and organizational support could stall India’s AI-driven growth trajectory. Companies that fail to invest in comprehensive AI skills development risk being outpaced by more agile competitors, while workers unprepared for this evolving landscape face uncertain futures.

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