AI talent growth accelerates in Tier-II cities as India’s workforce expands

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Tier-II cities emerge as major contributors to India's growing AI workforce
Tier-II cities emerge as major contributors to India's growing AI workforce

India’s artificial intelligence talent ecosystem is rapidly expanding beyond major metropolitan hubs, with Tier-II cities emerging as important contributors to the country’s growing AI workforce. According to Scaler’s India AI Workforce Report 2026, nearly 1 in 5 AI learners now come from smaller cities.

The report revealed that cities such as Lucknow, Jaipur, Patna, Indore, Coimbatore and Nagpur together account for almost 20% of India’s AI talent pool. Bengaluru remained the country’s largest AI hub, contributing 19% of learners, followed by Pune at 7%. Hyderabad and Mumbai accounted for 4% each, while Chennai contributed 3%.

The findings are based on an analysis of 11,444 AI learners from more than 3,000 institutions and organisations across different industries, experience levels and educational backgrounds.

The report highlighted that AI adoption is no longer limited to engineering. Around 50% of AI-enabled career outcomes are now outside traditional technical roles. Leadership positions accounted for 27% of outcomes, while non-tech functions represented 15%. Engineering roles made up 48%, and Data and AI-specific roles accounted for 10%.

The study also found that 1 in 4 AI learners comes from non-technical backgrounds, reflecting growing interest in AI skills across business functions.

Another major trend is the rising participation of women in AI-related careers. According to the report, women who transitioned into AI-enabled roles recorded an average 145% increase in annual compensation.

Female representation is also increasing across several functions. Women account for 41% of technical support roles, 37% of data analyst positions, and nearly one-third of roles in HR, academia and marketing.

The report highlights how AI skill development is creating new opportunities beyond traditional technology jobs and driving talent growth across smaller cities and diverse professional backgrounds.

Also read: Viksit Workforce for a Viksit Bharat

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