Editorial illustration for Ambani Warns: Indian Firms Slow to Adopt AI Despite Retraining Efforts
Ambani Warns: Indian Firms Lag in Critical AI Transformation
Ambani says AI adoption lags as gov hubs expand and IT firms retrain staff
In the high-stakes world of Indian tech, Mukesh Ambani is sounding an urgent alarm. The billionaire industrialist sees a critical gap emerging: Indian businesses are dragging their feet on artificial intelligence adoption, even as the infrastructure for AI transformation rapidly expands.
The challenge isn't a lack of potential. Government-backed AI hubs are multiplying, and major IT firms are aggressively retraining their workforce in generative AI technologies. Yet something fundamental is missing: widespread, practical buildation.
Younger engineers are racing ahead, teaching themselves modern AI skills through online platforms and self-study. But corporate leadership appears hesitant, stuck between technological promise and operational uncertainty.
Ambani's warning comes at a key moment for India's tech ecosystem. As global competitors accelerate AI integration, the country's corporate landscape risks falling behind in a technology that could redefine business competitiveness.
The real question now: Can Indian firms bridge this critical adoption gap before it becomes an insurmountable challenge?
Ambani believes that many are yet to apply AI in real-world business environments. However, progress is being made: government AI hubs are expanding access, large Indian IT companies are retraining thousands in Generative AI, and younger engineers are self-learning rapidly. "The true disparity is that while many Indians know AI, very few are able to integrate a RAG agent into an outdated workflow without causing system failures," he added.
On the ground, this means going beyond textbook instruction and embedding digital instructional tools and experiential formats. Tiwari pointed at the growing wave of technology-driven education, i.e., "We have digital learning platforms… online learning, AI-based credit counselling is there." Yet, the challenge is not solely in training youth; it lies in training the trainers as well. Industry Reality In the trenches of semiconductor manufacturing and global capability centres (GCCs), the disruption is far more immediate.
Jitendra Chaddah, country head at GlobalFoundries, warned during the BSS 2025 that AI is fundamentally altering the hierarchy of skills. One of the key transitions that companies need to be prepared for is that more and more decisions are going to be made by machines, he said. The once-coveted skills of the tech workforce, especially coding, are no longer scarce.
"Coding was a great skill… today a lot of that coding is getting done by the machines." Also, the national picture is sobering. The India Skills Report 2025 showed an overall employability of 54%, and a dire 40%+ among ITI and polytechnic graduates. "The employability gap in terms of AI and engineering skills is very, very low," Nipun Sharma, CEO of the recruitment platform TeamLease, told AIM.
Ambani's stark warning highlights a critical gap in India's AI landscape. While enthusiasm and training programs are expanding, practical buildation remains challenging for many businesses.
The technology sector is clearly in transition. Government AI hubs and corporate retraining efforts suggest serious commitment, yet real-world integration continues to stumble.
Younger engineers appear more adaptable, rapidly self-learning generative AI skills. But systemic challenges persist in transforming theoretical knowledge into operational solutions.
Ambani's candid assessment points to a nuanced reality: knowing AI isn't the same as successfully deploying it. The challenge lies not in understanding the technology, but in smoothly embedding it within existing complex workflows.
India's tech ecosystem stands at an interesting crossroads. Retraining initiatives and growing access to AI resources are promising signs, but true technological transformation requires more than classroom learning.
The path forward demands practical skill development and a willingness to experiment. Only by bridging the gap between knowledge and application can Indian firms truly use AI's potential.
Further Reading
- Mukesh Ambani unveils Reliance's AI vision to employees - The Tribune India
- Mukesh Ambani Calls for Empathy in AI Development for India - The Economic Times
- India needs to lead in AI while prioritising empathy in tech adoption, says Mukesh Ambani - The Economic Times
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Common Questions Answered
What specific challenge is Mukesh Ambani highlighting about AI adoption in Indian businesses?
Ambani is pointing out that while Indian companies have infrastructure and training programs for AI, they are struggling to practically integrate AI technologies into real-world business environments. Despite government AI hubs and corporate retraining efforts, many firms are not effectively applying AI to transform their existing workflows and systems.
How are Indian IT companies attempting to address the AI skills gap?
Major Indian IT firms are aggressively retraining their workforce in generative AI technologies, focusing on developing practical skills among their employees. Additionally, younger engineers are proactively self-learning AI skills, which suggests a growing recognition of the technology's importance in the current business landscape.
What does Ambani suggest is the key barrier to AI integration in Indian businesses?
According to Ambani, the core issue is not a lack of AI knowledge, but the ability to successfully integrate advanced AI technologies like RAG (Retrieval-Augmented Generation) agents into existing workflows without causing system disruptions. This highlights the complexity of practical AI implementation beyond theoretical understanding.