Artificial intelligence is set to significantly reshape India’s workforce, with up to 28% of back-office roles projected to face disruption over the next three years, according to a report cited by Mint, highlighting growing concerns around job displacement and skills readiness.
The findings are part of the 2026 edition of the SHRM India Skill Intelligence Report, which surveyed more than 198 senior HR and learning leaders and drew insights from over 200 consulting engagements. The report indicates that despite rising adoption of AI and automation tools, organisations remain inadequately prepared to manage large-scale workforce transformation.
A key concern identified in the report is the widening skills gap, with around 45% of organisations stating that shortages in AI and digital capabilities represent their most significant workforce challenge.
The report outlines that back-office roles are likely to be the most impacted by AI-driven disruption at 28%, followed by data and reporting functions at 24% and customer service roles at 21% over the next three years.
Johnny C. Taylor Jr., President and CEO of SHRM, stated that organisations globally are grappling with the challenge of preparing both people and systems for rapidly evolving work environments. He said that India stands out due to the scale of opportunity, given its young workforce and expanding digital ecosystem, positioning it to set benchmarks in building future-ready talent.
The report also highlights structural challenges beyond technology adoption. India’s formal workforce training rate remains significantly low at 2.3%, compared to 68% in the United Kingdom, 75% in Germany and 96% in South Korea, underscoring the need for stronger skilling frameworks.
It further identifies gaps in ESG and sustainability-related skills, with around 41% of organisations reporting shortages in such capabilities, while only one in 14 companies qualifies as advanced in ESG talent readiness.
The report suggests that companies may be allocating resources inefficiently in learning and development. Nearly 60% of L&D budgets are directed towards digital self-paced courses and classroom training, while hands-on learning formats account for just 3% of spending. It also notes that only 34% of organisations formally measure the outcomes of their skilling programmes, indicating a lack of accountability in training effectiveness.
The findings further point to relatively low urgency around AI adoption, with around 54% of organisations reporting moderate to low urgency in AI investments. Leadership concerns and questions around return on investment account for approximately 44% of the barriers to AI adoption.
Achal Khanna, CEO of SHRM APAC and MENA, stated that India is at a critical juncture in its workforce transformation journey, adding that as organisations accelerate investments in AI, digital transformation and sustainability, the ability to build scalable, future-ready skills will become a key differentiator.
The report underscores the need for a strategic shift in how organisations approach skilling, training formats and workforce planning, as AI continues to redefine the nature of jobs and employment in India.