Indian graduates are demonstrating a strong aptitude for roles in Artificial Intelligence (AI) and Machine Learning (ML), according to a report by talent assessment firm Mercer Mettl, released on Tuesday. The report highlights that Indian graduates have the highest employability rate in AI and ML among all technical roles, standing at 46.1%.

Analyzing data from over 2,700 campuses and more than one million learners, the study presents a mixed landscape—while graduates display strong adaptability, persistent skill gaps remain. Notably, 50% of graduates possess the soft skills necessary for AI and GenAI collaboration, though creativity remains a challenge with a 44.3% employability rate. Strengths include communication skills (55.1%), critical thinking (54.6%), and leadership (54.2%). Additionally, learning agility, with a 46% employability rate, is seen as a crucial factor for thriving in the evolving tech sector.

The report also highlights variations in employability based on educational institutions and geography. Graduates from Tier 1 colleges lead with a 48.4% employability rate, followed by Tier 2 (46.1%) and Tier 3 (43.4%) institutions.

Tier 2 graduates particularly excel in UI/UX developer roles, achieving a 58.3% employability rate. Regionally, Delhi reported the highest employability at 53.4%, followed by Himachal Pradesh and Punjab (51.1%), while Uttarakhand (50%) and Jharkhand (49.6%) also performed well.

A notable finding is gender parity in employability within AI, ML, and data science roles. However, disparities persist in software testing.

The overall employability rate for Indian graduates in 2025 stands at 42.6%, reflecting a slight decline from 44.3% in 2023, attributed to evolving industry expectations. Despite this, technical role employability has seen significant progress as colleges and students increasingly align their skills with market demands.