The New Talent Scarcity: How to Hire Top-Tier AI/Deep-Tech Talent.

India’s tech scene is booming with AI startups, deep-tech ventures, and data-driven enterprises popping up in every major city. Yet, behind this glittering growth story lies a harsh reality: there’s a widening gap between the demand for skilled talent and the actual readiness of graduates. A recent employability report states that only 42% of engineering graduates are job-ready, and the numbers drop even lower when it comes to specialized roles in artificial intelligence and machine learning.

For founders and hiring managers, this shortage isn’t just about finding employees; it’s about finding people who can build, innovate, and stay ahead of global competition. The struggle is real, especially for early-stage startups that can’t always match corporate salaries. Many Indian entrepreneurs are now rethinking how they attract and retain top minds. They’re betting on culture, purpose, and ownership over high paychecks. A coder who believes in your mission will often outperform someone who’s just there for the money.

Deep-tech startups in Bengaluru, Hyderabad, and Pune are building small but highly capable teams by tapping into alternative talent pools. They’re collaborating with coding bootcamps, AI upskilling platforms, and even open-source communities to find self-taught experts who may not have formal degrees but have proven technical skills. The focus has shifted from paper credentials to performance and creativity. Some founders even recruit from smaller towns, where passion for technology is growing fast, and remote work has removed barriers of geography.

AI-focused startups are also investing in training their hires internally. Instead of waiting for perfect candidates, they’re creating them. A few weeks of intense project-based mentoring often bridge the gap between academic knowledge and real-world product development. This approach not only fills roles but builds loyalty, employees feel they’re growing with the company.

At the same time, hiring strategies are getting sharper. Startups are using technical challenges and hackathons as recruitment tools, spotting problem-solvers rather than degree-holders. They’re making interviews practical, assigning real product problems, and giving candidates the space to showcase how they think. This not only identifies the right fit but also attracts those who thrive on learning and experimentation.

With global companies setting up AI research centers in India, competition for top talent will keep intensifying. To survive, Indian entrepreneurs must look beyond traditional hiring and build ecosystems that nurture skill and curiosity. The next generation of AI talent may not come from elite universities; it might come from a small-town coder who trained herself on YouTube or a dropout building neural networks in his dorm room.

The real opportunity lies in recognizing and shaping that raw potential before someone else does.