India’s Talent Hotspots – Where the Future of AI is Being Built

As India cements its position as a global leader in Data, Analytics, and AI, the geography of talent is evolving in surprising ways. While Tier-1 cities like Bengaluru, Hyderabad, and Pune continue to dominate AI hiring, a quiet revolution is underway in Tier-2 and Tier-3 cities. These emerging hubs are not only expanding the talent pool but also reshaping how and where innovation happens.

The Traditional Powerhouses

Bengaluru remains the undisputed epicenter of India’s AI ecosystem. With its dense concentration of startups, global capability centers (GCCs), and research institutions, the city accounts for nearly 30% of all AI-related hiring in the country. Hyderabad and Pune follow closely, driven by strong infrastructure, a growing base of tech companies, and government support for innovation.

These cities offer a mature ecosystem with access to top-tier talent, but they also come with challenges like rising costs, high attrition rates, and intense competition for skilled professionals.

The Rise of Emerging Cities

In 2025, companies are increasingly looking beyond the metros. Cities like Kochi, Ahmedabad, Coimbatore, Indore, and Chandigarh are gaining traction as viable alternatives for AI talent. These locations offer several advantages:

• Lower operational costs compared to Tier-1 cities

• Higher employee retention due to a reduced job-hopping culture

• Improved quality of life, which appeals to professionals seeking work-life balance

• Growing educational infrastructure, with local universities offering AI and data science programs

Startups and GCCs are setting up satellite offices or remote teams in these cities, leveraging hybrid work models to tap into previously underutilized talent pools.

GCCs: The New Innovation Engines

Global Capability Centers (GCCs) are playing a pivotal role in this geographic shift. Once seen as cost-saving back offices, GCCs in India are now driving core innovation. In 2025, over 60% of GCCs in India have dedicated AI/ML teams, and many are leading global AI initiatives from India.

These centers are strategically expanding into Tier-2 cities to diversify their talent base and reduce dependency on saturated metros. This decentralization is also helping companies build more resilient and inclusive teams.

Remote Work and Hybrid Models

The normalization of remote work has further accelerated this trend. Companies are no longer constrained by geography when hiring AI talent. Hybrid models allow organizations to maintain a presence in major cities while building distributed teams across the country. This flexibility is particularly appealing to professionals who prefer to stay closer to their hometowns or avoid the high cost of living in metros.

What This Means for Employers and Job Seekers

For employers, the message is clear: the future of AI talent in India is not confined to a few cities. By expanding their geographic lens, companies can access a broader, more diverse talent pool and build more sustainable hiring strategies.

For job seekers, this shift opens up exciting opportunities. You no longer need to relocate to a metro to build a successful career in AI. With the right skills and connectivity, you can contribute to cutting-edge projects from virtually anywhere in the country.