In 2025, Indian businesses are prioritizing the rapid adoption of artificial intelligence (AI), but they’re hitting a critical roadblock—finding candidates who blend AI expertise with essential human skills. A recent LinkedIn report reveals that 98% of business leaders in India are placing AI adoption at the top of their strategic agenda. However, the challenge lies in the recruitment process, where a growing skills gap is hindering progress.
According to Microsoft-owned LinkedIn, three in five recruiters in India report difficulty in sourcing candidates with the right mix of technical and soft skills. The demand for professionals with expertise in AI, software development, and engineering continues to surge. At the same time, there’s an equally strong need for human-centric skills such as communication, creativity, and problem-solving.
AI Skills Alone Aren’t Enough
The hiring challenge is compounded by the quality of applications. 54% of HR professionals say that only half or fewer of the applications they receive meet both the required and preferred qualifications. While 61% struggle to find candidates with the right technical skills, 57% also cite a lack of soft skills as a major barrier.
Some of the hardest-to-find skills in the market include:
- Software development and engineering (44%)
- AI expertise (34%)
- Communication and problem-solving (33%)
This talent mismatch is leading HR professionals to become more selective. Around 41% say they receive too many irrelevant applications, and over half would only consider candidates who meet at least 80% of job qualifications.
Skills-First Hiring: The Need of the Hour
Ruchee Anand, India Country Head of Talent & Learning Solutions at LinkedIn, emphasizes that while AI has the potential to revolutionize hiring, the real success lies in making AI work for businesses through people. She advocates for a skills-first mindset, where companies prioritize hiring for capabilities over traditional qualifications.
Anand emphasizes that companies often invest in AI without the right talent, neglecting the importance of ensuring the right people are in place to maximize its value.
Upskilling is Key to AI Adoption
Recognizing the skills gap, 84% of HR professionals in India rank employee upskilling as their top priority for 2025. This includes training in:
- AI and technical tools
- Soft skills like communication, creativity, and collaboration
Learning and development (L&D) professionals echo this sentiment. For them, soft skills are becoming as critical as technical expertise. Nearly 48% of business leaders also agree that investments in AI-focused L&D programs are essential to accelerating AI integration within their organizations.
AI Tools Supporting Recruiters
To streamline hiring, LinkedIn is rolling out AI-powered features, including the new Hiring Assistant, designed to handle repetitive recruiting tasks. In India, 37% of HR professionals spend 1–3 hours daily reviewing applications, a process AI can help simplify. 64% believe AI tools will make hiring faster and more effective, allowing HR teams to focus on strategic, people-centric efforts.
In conclusion, while India is ready to embrace AI at scale, the success of this transition depends heavily on finding the right talent. Companies must shift toward a skills-first hiring approach and invest in both technical and soft skill development to truly unlock AI’s transformative potential in the workplace.
