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India Faces a Talent Crunch as Demand for Agentic AI Professionals Skyrockets

India is currently grappling with a significant shortage of agentic AI professionals, a situation exacerbated by the rapid rise in demand for sophisticated AI agents capable of autonomous decision-making. As businesses move beyond basic chatbots towards developing intelligent agents that can address complex business challenges and support decision-making processes, the talent pool struggles to keep up.

Currently, India has fewer than 100,000 professionals with expertise in agentic AI, but industry projections estimate that this demand will double to around 200,000 by 2026. This data is supported by insights from executives at leading consulting, research, and recruitment firms such as BCG, Everest Group, TeamLease, and Adecco.

Understanding Agentic AI
Agentic AI refers to artificial intelligence systems designed to make autonomous decisions, perform actions, and adapt to dynamic environments. Professionals in this niche are diverse, including developers who construct the code base, architects responsible for designing AI frameworks, program engineering managers who integrate solutions into software, and testers who ensure system functionality.

Ankush Wadhera, managing director and partner at BCG, remarked, “Agentic AI can enable tech companies to deliver higher value through a ‘service as a software’ shift from ‘software as a service’.” He further noted that these AI agents allow firms to develop industry-specific solutions.

Current Supply and Demand Dynamics
According to Karthikeyan Kesavan, director of permanent recruitment at Adecco India, only about 40% of the current demand for agentic AI talent is being met. AI architects, in particular, are the hardest to find.

The shortage is also driving a dramatic increase in salaries. Professionals with 2-5 years of experience in agentic AI can expect an average salary of Rs 25 lakh per annum. In contrast, a regular developer with similar experience earns around Rs 8 lakh, while an AI expert’s salary is approximately Rs 13 lakh.

Pranshu Upadhyay, regional director and head of India technology practice at recruitment services firm Michael Page, noted, “At mid-senior levels, salaries for these roles range from Rs 80 lakh to Rs 2 crore.”

The Growing Demand
Currently, only 10-15% of the 650,000 AI professionals in India possess the necessary expertise in agentic AI, yet the demand could reach 150,000-200,000 by next year, according to a TeamLease research report. Neeti Sharma, CEO of TeamLease Digital, highlighted that this demand will primarily be fueled by GCCs, IT firms, and startups.

Yugal Joshi, partner at Everest Group, has observed a surge in hiring across big tech firms, startups, consulting companies, and IT service providers. Many are either piloting or planning to deploy AI agents in the upcoming 1-2 years. New roles like ‘agentic AI architect’ and ‘AI agent engineer’ are emerging, although many professionals currently hold broader AI/ML roles.

Industry Shift and Market Potential
The burgeoning demand is part of a larger industry shift from simple automation to AI agents that can independently execute tasks. This shift is accompanied by a surge in investments aimed at enhancing agentic capabilities across various sectors.

The market for AI agents is expected to expand from $5.1 billion in 2024 to $47.1 billion by 2030, as reported by industry body Nasscom. Segments such as autonomous vehicles, smart manufacturing, and healthcare are earmarked for high growth, with agentic AI systems poised to drive significant innovation.

Pranshu Upadhyay of Michael Page stated, “There are conversations around agentic AI building up in India, and companies are keen to understand how the talent landscape is evolving in this space.”

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Note: This article is inspired by content from https://economictimes.indiatimes.com/tech/artificial-intelligence/india-facing-shortage-of-agentic-ai-professionals-amid-surge-in-demand/articleshow/120651512.cms?from=mdr. It has been rephrased for originality. Images are credited to the original source.