India's AI race is moving very fast, but companies are now facing one major issue nobody can ignore anymore. Nearly half of firms in the country say they cannot find enough people with AI, digital, and data skills.

A new SHRM India report has shown that businesses want to expand into artificial intelligence and future technologies, but skilled workers are simply not available in enough numbers right now.

This is becoming a serious concern because industries are changing rapidly. Companies are spending money on technology, automation, and digital systems, but many employees still lack the exact skills needed for these modern jobs. Experts believe this gap could slow down growth if businesses and educational systems don't move quicker.

Why Companies Are Suddenly Worried

The report says around 45 per cent of organisations in India now see AI and digital skills shortage as their biggest workforce problem. That number alone explains how strongly the market is shifting.

For many firms, the challenge is not technology anymore. Machines, tools, and software are available. The real struggle is finding workers who know how to use them properly. Businesses need people who understand AI tools, data systems, cybersecurity, machine learning, and digital operations. But trained talent is still limited.

Many HR leaders feel colleges and training systems are still behind industry needs. Students often finish degrees without practical AI knowledge. Because of that, companies spend extra time training fresh recruits from scratch.

The ESG Skill Problem Is Also Rising

The report also mentioned another interesting thing. Around 41 per cent of firms say there is a major shortage of green and ESG-related skills too.

ESG means environmental, social, and governance practices. More companies now want employees who understand sustainability, climate goals, ethical business systems, and green reporting. But very few organisations currently have advanced ESG talent.

That is becoming important because global investors and international clients now closely watch how companies behave on sustainability issues. Businesses without trained ESG teams may struggle in future competition.

AI Investments Are Growing, But Slowly

Even though AI is everywhere in discussions today, many Indian firms are still moving carefully. The report found that about 54 per cent of organisations have only moderate or low urgency regarding AI investments.

This shows that companies are interested in AI, but some are still confused about how deeply they should adopt it. Many businesses are worried about costs, workforce changes, and long-term returns.

At the same time, employees are also nervous. Some fear automation could replace jobs. Others feel pressure because they must learn new tools quickly to stay relevant in the market.