The rising digital adoption by businesses and consumers has accelerated innovation across industries, leading to a seismic shift in how organizations operate, grow and enhance customer experience. Business leaders are scrambling to slash costs through automation and efficient practices, and that’s where the role of artificial intelligence (AI) has become indispensable. AI has been pushed to the top of the corporate agenda the world over.
According to a recent forecast by the International Data Corporation (IDC), the worldwide revenue for AI is expected to reach a whopping $554.3 billion by 2024. The boom has prompted companies to hire the best AI talent and intensified the crunch in the marketplace.
Growing Chasm of AI Talent Demand and Supply
With industry giants looking to amp up their AI investments, the technology is becoming mainstream and the demand for those able to build AI-powered solutions is only surging. In their 2020 Emerging Jobs Report, LinkedIn has stated that the hiring growth for the role of AI specialist has grown 74% over the past 4 years. As per another study, the job vacancies for machine learning engineers increased by 344% between 2015 and 2018. This rise has widened the demand-supply gap, with an average of two jobs available for every AI professional.
This skill shortage is prevalent across the entire AI maturity ladder. In a recent study by a Big 4 consulting firm, around 27% of the surveyed executives reported an ‘extreme’ AI skill gap while around 68% reported a ‘moderate-to-extreme’ skill gap (see graph below). While early AI adopters face a gap as they are looking to boost their AI capabilities, seasoned AI adopters also report a significant gap. This is primarily because as companies move up the AI ladder, their demand for AI talent experiences a shift-they tend to look for business leaders who understand how AI systems can be applied to business decisions.
On the other hand, the supply of AI talent is also increasing as individuals are recognizing high-paying opportunities within the field. Universities have also updated their undergraduate computer science courses to include AI components and resources. While large companies are offering upskilling training through in-house or external programs, AI-focussed companies including the likes of Google and NVIDIA have launched foundational courses. All these factors have contributed to creating high-value AI professionals.
Nevertheless, the talent pool remains too small to cater to the soaring demand. As per a recent report by Tencent Research Institute, there are only 300,000 AI researchers and practitioners worldwide, while the demand is for millions. Also, understanding and applying AI entails an extensive study of advanced mathematics, statistics, and computer science-not something everyone is prepared to do. The situation is exacerbated by the fact that several data scientists are leaving their work in academia for job roles in the industry, limiting the number of resources available to train the next generation of AI practitioners.
Besides, AI practitioners need a lot more than just technical skills. They are increasingly expected to have domain-specific expertise to interpret data and provide suitable recommendations, engineering experience to build solutions for the real world, and commercial experience to build and manage AI teams. The demand for highly competent professionals further constraints the size of the talent pool.
So, in essence, while the supply of AI talent has risen, the demand has considerably outgrown supply and will continue to do so for many more years to come.
Tackling AI Talent Shortage-What can companies do?
Amidst the ongoing crunch, companies can act proactively and adopt strategies that can steer them in the right direction and help them attract and retain the right AI talent.
Collaborate to Open New Pathways: One of the best ways to tackle the skill shortage would be to rethink recruitment practices. Several prominent universities such as MIT, Harvard, Cambridge, and Oxford are preparing students to directly enter the workforce and contribute to the industry.
Those looking to attract top talent in AI should consider collaborating with these academic institutions and AI Labs to bolster their reputation as a supporter of AI-driven innovation. Under such collaborations, companies can sponsor hackathons and student projects, partner with departments specialising in AI and launch AI-focussed internships. Meet-ups can also be arranged to identify promising candidates.
Similarly, organizations can engage with a recruitment partner who knows where the opportunities lie and can source the right talent locally as well as globally.
Focus on Top-notch Training over Recruiting: According to a study by Deloitte, business executives tend to hire new AI talent instead of retaining and upskilling their existing workforce. Given the talent crunch in the marketplace, this cannot be considered a viable strategy.
By providing best-in-class training opportunities to existing employees, they can secure a competitive advantage in attracting and retaining the best talent. This will not only boost their expertise but also help attract individuals who are open to learning new things.
Spot Leaders Early on: In a world, where everyone wants the best resources to achieve strategic goals, stoking their talent pipeline by identifying and nurturing future leaders can help organizations reap dividends for years into the future.
CellStrat-Shaping the Future of AI
A leading global AI firm, CellStrat is engaged in deep-tech research, development and training in emerging areas of AI through AI Lab & AI Developer tools Hub. We conduct online training programs aimed at producing world-class data scientists and AI engineers. Graduates of our AI training and internship programs have been successfully placed in top tech firms and startups including Wavicle Data Solutions, NetApp, SravathiAI, InnoCirc Ventures, TELiBrahma Technologies, Dressire, and Ignitarium. To know more about the AI job positions/gig roles with our partner firms, click here.
