AI readiness has a direct bearing on student placements and long-term employability. | Photo Credit: Getty Images/iStockPhoto According to the World Economic Forum (WEF), AI-related roles dominate the list of fastest-growing job categories and will change employability skills by nearly 70% over the next five years. With education emerging as one of the most-impacted sectors, the National Education Policy (NEP) 2020 emphasises the need to integrate technology in learning. The University Grants Commission (UGC) and the All India Council for Technical Education (AICTE) have already begun laying the policy framework for integrating AI courses within existing programmes and offering standalone AI courses. Public announcements have also been made regarding the establishment of universities dedicated to AI. While all this is welcome, it cannot fully be leveraged unless the foundational digital infrastructure required to support and scale AI readiness is built by higher education institutions. This is crucial because it has a direct bearing on student placements and long-term employability. As per various reports, the demand for graduates with AI skills is rising faster than the number of students currently being trained in AI. This widening gap presents HEIs with an opportunity to build a skilled AI workforce for the world but challenges related to plagiarism, unethical use of AI, data privacy, cyber security and other risks must also be addressed effectively. Crucial impact AI can play a pivotal role for HEIs in two broad areas. On the innovation front, students equipped with AI knowledge can secure premium corporate jobs and spearhead digital/AI entrepreneurship. With close to 50 million students enrolled across India’s higher education ecosystem, the country has the potential to fill the global demand-supply gap for skilled manpower in addition to becoming a research and innovation hub delivering solutions to some of the most pressing problems, including those created by AI. Second, AI can transform how HEIs deliver their services, conduct training and improve operations, enable personalised learning, streamline routine administrative work, prepare teachers to deliver AI courses, enable automated assessments and ensure integrity. All this requires purpose-built digital infrastructure, such as high-speed networks capable of large-scale data transfers, robust data storage systems and learning management systems integrated with AI tools. A pressing need is to develop an interconnected ecosystem, which clearly defines the role of each stakeholder. Government schemes such as the AI Workforce Acceleration Plan, Multidisciplinary Education and Research Improvement in Technical Education (MERITE), aimed at digital upgrades, smart classrooms, teaching-learning labs and faculty development have been rolled out. The industry can articulate skill requirements, offer internships/apprenticeships and partner with HEIs to offer curated courses suited to their needs and plans. Collaboration needed A strategic collaboration between government, industry, and financial institutions is required to fund massive investments in building infrastructure, sponsoring research, designing courses, training teachers, and fuelling entrepreneurship. A robust policy framework to govern and regulate AI is also needed, especially in the backdrop of the recent data privacy rules. The role and necessity of a regulator to catalyse growth, audit institutional readiness and distribute standardised toolkits for AI digital infrastructure should also be discussed. HEIs, on their part, can function as centres of excellence and innovation to conduct extensive research on AI, develop ethical and sustainable solutions, train workforces and mutually beneficial building partnerships with the industry. The U.S. has been a first-mover in spearheading such partnerships between the government, industry and HEIs for AI readiness. For example, Arizona State has partnered with OpenAI to integrate AI across the university’s curriculum, research, and operations. Additionally, the Stargate Initiative plans to invest $500 billion in AI infrastructure by 2029 on high-performance GPUs, AI accelerators, cooling systems and high-bandwidth networks. Building AI-ready institutions is essential for increasing economic competitiveness, student employability and technological innovations. By focusing on purpose-built AI infrastructure, learning from international models and building robust partnerships, India can transform its higher education system into a global powerhouse of AI innovation. Views expressed are personal The writer is a Partner, Education and Skilling, Management Consulting, BDO India. Published – January 17, 2026 02:00 pm IST Share this: Click to share on WhatsApp (Opens in new window) WhatsApp Click to share on Facebook (Opens in new window) Facebook Click to share on Threads (Opens in new window) Threads Click to share on X (Opens in new window) X Click to share on Telegram (Opens in new window) Telegram Click to share on LinkedIn (Opens in new window) LinkedIn Click to share on Pinterest (Opens in new window) Pinterest Click to email a link to a friend (Opens in new window) Email More Click to print (Opens in new window) Print Click to share on Reddit (Opens in new window) Reddit Click to share on Tumblr (Opens in new window) Tumblr Click to share on Pocket (Opens in new window) Pocket Click to share on Mastodon (Opens in new window) Mastodon Click to share on Nextdoor (Opens in new window) Nextdoor Click to share on Bluesky (Opens in new window) Bluesky Like this:Like Loading... 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