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India’s AI boom spreads beyond metros: 1 in 5 learners now from Tier-II cities

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India’s AI talent pipeline is expanding beyond the country’s biggest technology centres, with one in five AI learners now coming from Tier-II cities, according to Scaler’s India AI Workforce Report 2026.

The report found that cities including Lucknow, Jaipur, Patna, Indore, Coimbatore and Nagpur now account for nearly 20% of the country’s AI talent pool.

Bengaluru remained India’s largest AI talent hub, accounting for 19% of learners in the sample, followed by Pune at 7%. Hyderabad and Mumbai contributed 4% each, while Chennai accounted for 3%, making them the country’s top five AI talent centres.
These findings are based on an analysis of 11,444 AI learners across experience levels, industries, educational backgrounds, salary progression and post-program role transitions, representing professionals from more than 3,000 institutions and a range of national and international organizations.

AI moves beyond engineering into business functions

The report found that 50% of AI-enabled career outcomes are now outside traditional engineering roles, spanning leadership, consulting, HR, marketing, finance, operations, academia and other business functions.

Leadership roles accounted for 27% of outcomes, while non-tech roles made up 15%. Engineering roles represented 48%, and Data & AI roles accounted for 10%.

The study also found that one in four AI learners comes from non-technical backgrounds, reaffirming the growing participation of professionals outside core technology functions.

Women see 145% CTC jump with AI upskilling

Another key trend highlighted in the report is the increasing participation of women in AI-enabled careers. According to Scaler, AI skill development is helping women transition into technology roles that were previously less accessible.

Women who moved into AI-enabled careers reported an average 145% increase in their annual compensation.

The study also found growing female representation across AI-linked functions, with women accounting for 41% of technical support roles, 37% of data analyst positions, and around one-third of HR, academia and marketing roles.

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