AI Adoption Surges in India: 98% of Business Leaders Make It a Priority for 2025

Artificial Intelligence (AI) is transforming the business landscape in India. A recent report reveals that 98% of Indian business leaders have made AI adoption a top priority for 2025, underlining its growing importance across industries.

The Rising Demand for AI and Soft Skills

As AI-driven tools become more prevalent, the demand for both technical and soft skills is on the rise. According to the LinkedIn report, companies are not only looking for AI and software development expertise but also value skills like communication and problem-solving. More than 60% of HR professionals believe AI-powered tools can make the hiring process more efficient and effective.

“AI is reshaping how we hire and develop talent. However, simply adopting AI is not enough—the key is to make it work for business growth,” said Ruchee Anand, India Country Head, Talent and Learning Solutions, LinkedIn.

The Challenge of Finding Skilled Talent

While businesses are keen to integrate AI, a lack of skilled professionals poses a major challenge. The report states that 54% of HR professionals find that only half or fewer job applications meet the required qualifications. Recruiters are also overwhelmed with applications from candidates who do not fit the roles they apply for.

To address this gap, companies are increasingly focusing on skill development. Around 84% of business leaders consider upskilling employees a top priority. This includes training in AI-related technologies as well as essential soft skills like collaboration and effective communication.

A Shift in Hiring Approach

With the evolving job market, HR professionals are now shifting towards a skills-first hiring approach. More than half of them prefer candidates who meet at least 80% of job qualifications rather than waiting for a perfect match. This shift reflects a growing emphasis on quality over quantity in the hiring process.

“AI can drive innovation, but human skills like creativity, collaboration, and communication will be key to staying ahead of change,” Anand added.

As India moves towards a more AI-driven future, businesses are expected to continue investing in both technology and workforce development to stay competitive in the evolving landscape.