AI Adoption Grows in India, but Workforce Readiness Still Lags: Aon Study

Aon plc, a leading global professional services firm, today released its findings for India from the inaugural Human Capital Trends Study, showing that organisations are making steady progress in artificial adoption (AI) adoption and workforce data capabilities but continue to face challenges translating these investments into workforce outcomes.

Organisations in India are positioning for faster AI adoption, supported by strong talent availability and workforce capability. Forty-three percent of organisations in India have already deployed AI, with a further 20 percent piloting programmes, reflecting steady progress toward broader adoption.

However, India lags the regional pace, with 74 percent of organisations across Asia Pacific (APAC) either deploying or piloting AI programmes. At the same time, India stands out globally and regionally in its ability to attract and retain AI talent. Thirty-nine percent of organisations report confidence in sourcing skilled talent, compared with 21 percent in APAC and 24 percent globally.

“India is at a pivotal stage where strong talent availability and growing AI adoption are creating new opportunities for businesses,” said Nitin Sethi, head of Talent Solutions in India for Aon. “Sustained value will come from continued investment in skills development and workforce strategies that enable people to work alongside technology and drive long-term business outcomes.”

Organisations in India are prioritising digital transformation, workforce productivity and organisational design to support growth, supported by advanced benchmarking sources such as Aon’s Radford McLagan Database, strengthening workforce insight and decision-making.

India also leads on several workforce strategy indicators compared with global peers. More than half of organisations (55 percent) report high HR data maturity, improving access to workforce insights and decision-making.

Additionally, 25 percent of organisations have a clearly defined and well-understood employee value proposition, indicating closer alignment between people strategies and business goals. These findings highlight India’s opportunity to translate workforce insight into stronger engagement and productivity outcomes.

As organisations continue to advance, there is an opportunity to better align employer intent with employee experience.

Employees in India place high value on customised benefits and holistic support, with opportunities to expand support in areas such as women’s health, financial education and broader access to benefits.

While 89 percent of organisations report confidence in their wellbeing strategies, there is a disconnect between what employers believe they provide and what employees experience. For example, 88 percent of employers believe they should support childcare, however, only 20 percent of employees report receiving it. Similarly, 89 percent of employers believe they should support financial education but only 14 percent of employees report access.

“Organisations in India are making strong progress in building data-driven and future-ready workforce strategies,” said Ashley D’Silva, head of Health and Wealth Solutions in India for Aon. “As organisations navigate increasingly complex talent dynamics, there is a growing need to define clear employee value propositions and design benefits that reflect different life stages. Aligning employee expectations with personalised, flexible benefits, strengthening communication and ensuring workforce investments deliver tangible outcomes will be critical to the next phase of growth.”

The findings highlight three priorities for organisations in India:

-Scaling AI adoption alongside workforce upskilling and reskilling

-Using strong data maturity to drive more targeted people strategies

-Better aligning employee expectations and the delivery and communication of benefits

As organisations navigate a rapidly evolving work environment, aligning workforce strategies with technology investments will be critical to driving sustainable growth and resilience.