India’s workforce is using AI, but just 20% are building with it: Report

India’s workforce may be rapidly embracing artificial intelligence, but the shift from simply using AI tools to building AI-powered solutions remains at an early stage, according to an upGrad report. While 94% of the 2,075 learners surveyed in the report said they already use AI, only 26% had connected AI to other tools or used an API, and just 20% had built an AI-powered automation, agent or app.

The findings from upGrad’s Skill Shift – Annual Report on India’s AI Skilling suggest that the next challenge for AI adoption is moving beyond experimentation and everyday use towards deeper technical capability and real-world application. The report is based on responses from learners across career stages and cities in India.

The gap is particularly visible in AI development. Learners enrolled in a programme were 2.7 times as likely to have built an AI agent as those who were neither enrolled nor exploring upskilling, with 27% of enrolled learners reporting that they had built one, compared with 10% in the latter group.

From AI users to AI builders

AI use is already widespread among the surveyed learners, with 53% saying they use AI daily. Daily usage also rises with professional experience: 44% of early-stage learners reported using AI daily, compared with 62% of professionals with eight or more years of experience.

Upskilling is similarly becoming an active part of career planning. Overall, 87% of respondents said they were either enrolled in an AI programme or exploring or planning to upskill.

Experienced professionals are also spending more time learning AI. Some 31% of professionals with eight or more years of experience said they spend at least three hours a week learning AI, compared with 15% of early-stage learners.

The report also found that AI is already being linked to reported career outcomes among surveyed learners. Some 54% said they had experienced a concrete career result that they attributed to AI, including greater confidence at work, a new role, a new job, a promotion or freelance income. Another 49% said AI had enabled them to undertake work that was previously out of reach.

The AI skilling problem

Despite high adoption, learners continue to face challenges in figuring out how to deepen their AI capabilities. About 56% identified knowing where to start as their biggest challenge, while 43% cited the number of available options and uncertainty over what is credible. Another 43% said keeping up with AI developments was a day-to-day challenge.

The report said the pattern of AI adoption and upskilling was visible across tier 1, tier 2 and tier 3 cities, suggesting that the shift among the surveyed learner population is not confined to India's metros.

Commenting on the findings, Anuj Vishwakarma, CEO, upGrad, said: “India has moved beyond asking whether AI will change the way we work. People are already using it and actively investing in the skills to work with it. The next challenge is making that journey clearer - helping learners understand what to learn, where to start and how to translate those skills into meaningful career outcomes.”

The study covered 2,075 respondents, including freshers, early-career, mid-career and senior professionals with 12+ years of work experience from across India. upGrad said the sample represents its engaged learner population and is not intended to be a national census. It also noted that relationships between upskilling and reported outcomes indicate associations rather than causation.