94% of Indians use AI, but only 20% build with it: Why the AI skills gap is widening
AI adoption is soaring in India, but most users are still consumers rather than creators, highlighting a growing skills gap. With 94% using AI but only 20% building AI applications or automations, the focus is shifting towards practical AI skills.
- Aug 25, 2026,
- Updated Aug 25, 2026 7:50 PM IST
Artificial intelligence adoption is spreading rapidly across India, but the ability to build with AI remains limited, highlighting an emerging skills gap. According to a recent report based on a survey of 2,075 people, 94% of respondents use AI, but only 20% have created an AI-powered application, agent or automation. Just 26% use APIs or connect AI with other services.
The gap comes as AI adoption becomes increasingly widespread among organisations. About 87% of Indian organisations are active users of AI solutions, while 88% reported using AI in at least one business function in 2025. Among Indian students, generative AI adoption stood at 84% in 2025.
The growing adoption is also raising questions about when students should begin developing familiarity with emerging technologies. Manish Gupta, Business Head, Jalsa Ventures (SHARD Centre of Innovation), said early exposure should focus on curiosity and problem-solving rather than preparing children for specific technical careers.
“AI is now rapidly becoming a part of our daily learning and working process. Therefore, early exposure to technological advances becomes increasingly important. The main task here is not to turn every child into a programmer, but rather to develop their curiosity, computational thinking and confidence in using technology,” Gupta said.
He added that age-appropriate exposure to AI, coding and robotics can help children view technology as a tool for discovery and creation. Incorporating these subjects as extracurricular learning, alongside academics, could also help develop problem-solving skills without adding to students’ academic burden.
From using AI to building with it
As AI adoption deepens, prompting alone may not be sufficient. Skills such as programming, machine learning, data science, automation, API integration and application development could become increasingly important for organisations using more sophisticated AI systems.
According to a 2026 SHRM India report, 45% of Indian firms identify AI, digital and data skills as a major skills gap. LinkedIn’s AI Skill Penetration Index ranks India at 3.0, indicating that AI skills appear on Indian professionals’ resumes three times more frequently than the global average. However, this does not necessarily translate into the ability to build AI applications.
Gupta said practical experience would be critical in bridging this gap. “Prompting the tool is just a small aspect of understanding AI. It requires the learners to get experience in using AI to solve problems with the help of data, software and other technologies,” he said.
He highlighted areas including artificial intelligence, machine learning, robotics, data science, drones, the Internet of Things and 3D printing as ways for students to move beyond consuming technology and towards building solutions.
MUST READ:India’s small businesses could be the biggest AI winners: World Bank report
Building India's AI talent pool
The demand for deeper AI skills is also evident in the growing interest in upskilling. While 94% of respondents already use AI, only 20% have built an AI-powered application, agent or automation. At the same time, 87% are pursuing, exploring or planning AI upskilling.
For India, the challenge is therefore shifting from AI adoption to capability building. Future professionals will need technical knowledge alongside creativity, communication, collaboration, critical thinking and adaptability.
“Over the long run, the challenge is to equip learners with the capabilities needed to succeed in a world where technology and human capability will work increasingly in tandem,” Gupta said. “The opportunities will be for individuals who not only understand technology but know how to use it to solve problems.”
The emerging priority for India is clear: moving from being AI users to developing people capable of applying AI to solve real-world problems.
ALSO READ: Can’t have both: Washington to ask countries to choose between US or China in the AI race
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine
Artificial intelligence adoption is spreading rapidly across India, but the ability to build with AI remains limited, highlighting an emerging skills gap. According to a recent report based on a survey of 2,075 people, 94% of respondents use AI, but only 20% have created an AI-powered application, agent or automation. Just 26% use APIs or connect AI with other services.
The gap comes as AI adoption becomes increasingly widespread among organisations. About 87% of Indian organisations are active users of AI solutions, while 88% reported using AI in at least one business function in 2025. Among Indian students, generative AI adoption stood at 84% in 2025.
The growing adoption is also raising questions about when students should begin developing familiarity with emerging technologies. Manish Gupta, Business Head, Jalsa Ventures (SHARD Centre of Innovation), said early exposure should focus on curiosity and problem-solving rather than preparing children for specific technical careers.
“AI is now rapidly becoming a part of our daily learning and working process. Therefore, early exposure to technological advances becomes increasingly important. The main task here is not to turn every child into a programmer, but rather to develop their curiosity, computational thinking and confidence in using technology,” Gupta said.
He added that age-appropriate exposure to AI, coding and robotics can help children view technology as a tool for discovery and creation. Incorporating these subjects as extracurricular learning, alongside academics, could also help develop problem-solving skills without adding to students’ academic burden.
From using AI to building with it
As AI adoption deepens, prompting alone may not be sufficient. Skills such as programming, machine learning, data science, automation, API integration and application development could become increasingly important for organisations using more sophisticated AI systems.
According to a 2026 SHRM India report, 45% of Indian firms identify AI, digital and data skills as a major skills gap. LinkedIn’s AI Skill Penetration Index ranks India at 3.0, indicating that AI skills appear on Indian professionals’ resumes three times more frequently than the global average. However, this does not necessarily translate into the ability to build AI applications.
Gupta said practical experience would be critical in bridging this gap. “Prompting the tool is just a small aspect of understanding AI. It requires the learners to get experience in using AI to solve problems with the help of data, software and other technologies,” he said.
He highlighted areas including artificial intelligence, machine learning, robotics, data science, drones, the Internet of Things and 3D printing as ways for students to move beyond consuming technology and towards building solutions.
MUST READ:India’s small businesses could be the biggest AI winners: World Bank report
Building India's AI talent pool
The demand for deeper AI skills is also evident in the growing interest in upskilling. While 94% of respondents already use AI, only 20% have built an AI-powered application, agent or automation. At the same time, 87% are pursuing, exploring or planning AI upskilling.
For India, the challenge is therefore shifting from AI adoption to capability building. Future professionals will need technical knowledge alongside creativity, communication, collaboration, critical thinking and adaptability.
“Over the long run, the challenge is to equip learners with the capabilities needed to succeed in a world where technology and human capability will work increasingly in tandem,” Gupta said. “The opportunities will be for individuals who not only understand technology but know how to use it to solve problems.”
The emerging priority for India is clear: moving from being AI users to developing people capable of applying AI to solve real-world problems.
ALSO READ: Can’t have both: Washington to ask countries to choose between US or China in the AI race
For Unparalleled coverage of India's Businesses and Economy – Subscribe to Business Today Magazine