Driving India’s skills agenda with generative AI

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Bill Gates recently said, “Generative Artificial Intelligence (AI) has the potential to change the world in ways we cannot even imagine. It has the power to create new ideas, products and services that will make our lives easier, more productive and more creative.” This technological innovation, which has transformed industries in sectors such as entertainment, banking and technology, is now exerting its considerable influence on education and skills.

Artificial Intelligence. (Thinkstock)
Artificial Intelligence. (Thinkstock)

It is imperative for governments and organizations to upskill and reskill their employees. Yet traditional methods of learning and development often prove inadequate; they are relatively expensive, struggle to keep pace with the rapidly evolving demands of modern skills, and are difficult to personalize. However, the rise of generative AI can provide a solution to these issues. Using detailed learner data, these platforms can tailor content to the specific needs, learning styles, and career paths of individuals. Furthermore, generative AI techniques can ensure continuous content development by dynamically updating training materials. Whether it is incorporating the latest precedents in legal training or keeping up with digital marketing trends, these techniques guarantee learners access to relevant, up-to-date content. Additionally, AI-powered mentorship and feedback mechanisms are now providing learners with real-time support and guidance. For example, for language or technical learning, an AI mentor or coach can provide instant feedback, suggestions, and personalized tips, making the learning process engaging and effective.

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With a growing workforce, which is projected to reach 575 million by 2030, India stands at a crossroads of opportunities. As there is a potential shortage of 85 million skilled workers in global markets, India can utilize its surplus labour force of about 80 to 90 million workers and establish itself as the skills capital of the world. However, realizing this ambition requires comprehensive skilling initiatives, which target both scale and quality. Supported by the Ministry of Skill Development and Entrepreneurship and the National Skill Development Corporation, and by policy guidelines such as the National Education Policy, programmes such as Skill India and schemes such as the Pradhan Mantri Kaushal Vikas Yojana (PMKVY), and new financial instruments such as skill loans and impact bonds have laid a solid foundation for India’s skills ecosystem.

With a target to skill nearly 400 million workers, the scale of India’s aspiration is massive. And this ambition reflects not just its domestic objectives, but also a commitment to global development. While the need and opportunity for India’s national skills agenda are clear, the key question is: how can we accelerate progress? One potential solution is generative AI, a technology that promises a transformational impact on skills enabled by scalability, inclusivity, and personalization and has in fact already begun to deliver.

What should be India’s next steps to ensure optimal application for education and skill development? Generative AI can facilitate the scale-up of high-quality skills through personalized coaching, on-the-job training through simulations and customized role-playing, and rapid production of tailored content.

First, the rigor of coaching, which is crucial for effective teaching, requires a balanced student-teacher ratio with high-quality teachers. And generative AI now has the ability to serve as a virtual personal teacher. It optimizes learning experiences by customizing content, pace, and assessments according to individual needs, thereby increasing engagement, motivation, and understanding.

Furthermore, while generative AI may not significantly increase internship opportunities, it can reduce the need for extensive on-the-job training by replicating similar environments in classrooms when paired with other technologies such as virtual reality. Generative AI is also accelerating content production and streamlining the creation of supporting materials such as personalized lesson plans. By automating these processes, generative AI increases efficiency, reduces costs, and allows educators to focus on more nuanced aspects of teaching, ultimately providing time and cost advantages that benefit both instructors and learners.

A recent example of government steps to promote the application of generative AI in education is seen in Taiwan, where a newly developed chatbot supported by Taiwan’s Ministry of Education and powered by advanced language models provides K-12 students with an interactive platform for language practice. In India, Google recently signed a MoU with the Maharashtra government, aimed at driving innovative and scalable solutions in key sectors such as education, agriculture, healthcare, sustainability, and start-ups.

From a financial perspective, the promise of generative AI is attractive. Large-scale programmes like Skill India will benefit greatly, with potential cost reductions between 30% and 50% depending on the maturity and capability of the generative AI model. This means potentially doubling the reach with coherent programme constructs like short-term courses and blended delivery. Imagine using AI to teach millions of people about retail sales or customer service. The AI ​​model can model different situations, like dealing with difficult customers or selling a product. This way, learners can practice and learn how to respond correctly to real-life situations.

This capability, combined with anytime, anywhere learning and access to AI coaches and mentors, could indeed completely transform existing programs and outcomes. The upfront investment in generative AI is reasonable and decreasing: the estimated upfront cost of a mid-scale generative AI program is between $1 and 2 million. Such efficiency could translate into widespread access without significantly compromising on the quality of skills.

Of course, there are both pros and cons to using generative AI in teaching, but focusing on the positive aspects and harnessing the inherent strengths of technology can be transformative for skill development in India. In this arduous journey, collaborative efforts between the private sector and the government are crucial. The private sector has expertise in subject matter, technology, and delivery, and the government has the vast reach, as well as an integrated digital ecosystem—Skill India Digital, that has the power to harness the untapped potential of generative AI.

This article is written by Ved Mani Tiwari, CEO, National Skill Development Corporation (NSDC) and Managing Director, NSDC International (NSDCI), Sagar Goel, Managing Director and Partner, Boston Consulting Group and Sriramprasad Rangarajan, Principal, Boston Consulting Group and Ambassador, BCG’s Henderson Institute.

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