Investing in India’s AI Talent: The Hidden Asset

Everyone’s chasing AI stocks. Few are betting on the people powering them.

The Real AI Gold Rush Isn’t in Silicon Chips — It’s in Human Skills

AI is the headline hero of our time. From ChatGPT drafting emails to self-driving cars dodging traffic in California, the world is obsessed with artificial intelligence. Everyone’s asking: Which AI stocks should I buy?

But here’s a question almost no one is asking:
Who’s training the AI? And who’s training the people training the AI?

Behind every breakthrough AI model is a global workforce of data labelers, annotators, coders, and engineers—a large chunk of them in India. While most investors are focused on tech platforms building AI, the smarter, longer-term bet may be on India’s skilling economy that’s quietly powering this global AI revolution.

Skilling Is the New Software: India’s Edtech Revolution Reloaded

India’s edtech boom may have cooled post-COVID, but it’s evolving—not disappearing. Platforms that once focused on board exams or CAT coaching are now pivoting to AI skilling, machine learning, and data science.

Take upGrad—once known for MBA and executive courses, it’s now deep into AI, blockchain, and full-stack development. Similarly, Scaler by InterviewBit is training thousands of software engineers in real-world AI applications, with placements in top tech firms.

Why it matters to investors:
These platforms are no longer just “online schools”—they’re becoming job factories, feeding global demand for AI talent. With hiring freezes in the West and cost-cutting at big tech, companies are looking to India for skilled labor—making these platforms more relevant than ever.

Emerging investment angles

• Platforms like Tyke, Grip Invest, or AngelList India sometimes feature private deals in edtech.
• upGrad and Simplilearn have hinted at IPOs in 2025–26—track them early.
• International players like Coursera and Udemy (listed in the U.S.) are also expanding in India.

The Invisible Backbone: India’s AI Grunt Work Factories

While the AI world is obsessed with models and algorithms, someone still needs to:

• Label images
• Transcribe videos
• Clean up training datasets
• Flag bias in outputs

This is often called the “dirty work” of AI—but it’s essential. And India has quietly built an army of data workers doing this at scale.

Key players in this space

• iMerit: Works on autonomous vehicles, medical AI, and more.
• Playment (now part of Telus): A leader in image and video labeling.
• Cogito Tech: Offers AI training data solutions for global clients.

These aren’t flashy tech unicorns, but they generate stable, recurring revenues by serving global demand. And as AI adoption grows, so does the need for more labeled, clean, accurate data.

Investor insight: These firms are often private, but:

• PE funds and global giants are quietly acquiring or funding them.
• If any of these go public, they could become niche multibaggers.

Listed Indian Companies Quietly Building the AI Supply Chain

Everyone knows Infosys and TCS are “getting into AI,” but their scale and legacy make them slow movers.

Instead, some mid-cap and small-cap companies are doing the heavy lifting:

• L&T Technology Services is building AI-based industrial solutions.
• Persistent Systems works on AI integration for healthcare and BFSI clients.
• Firstsource is using AI in customer service, hiring, and backend ops.

What connects them all?
They’re not just offering AI tools—they’re hiring and training thousands of Indians in AI operations, often in Tier 2 cities.

And that workforce? It’s being trained by—you guessed it—India’s skilling platforms.

Why it’s investable:
These companies are listed, profitable, and less hyped. Perfect for long-term positions in an “AI-adjacent” portfolio.

Beyond IITs: The Rise of Outcome-Based Education Models

A big shift is underway in how Indians learn job skills. Degrees are being replaced by micro-credentials, certifications, and practical bootcamps.

Companies like:

• Masai School (coding bootcamp with ISA model)
• Newton School (placement-first edtech)
• Pesto Tech (remote-first, work-for-global model)

are not just educating—they’re placing students into global tech jobs. And with job-linked fee models, these platforms are aligned to employment outcomes, not just enrollments.

As an investor, this means:

• Lower student churn
• Stronger cash flow post-placement
• Huge potential for scale, especially in non-metro India

Watch for future IPOs or opportunities to enter early via startup funding platforms.

Think Globally, Bet Locally: India as the AI Outsourcing Hub

The West is going full throttle on AI. But building AI tools is expensive.
Training them? Even more so.

That’s why global firms—from startups in San Francisco to Fortune 500 companies—are outsourcing AI workflows to India:

• Annotation
• Model fine-tuning
• Quality assurance
• Ethics and bias testing

And these aren’t just tech tasks—they need contextual intelligence, multilingual talent, and cultural sensitivity. India has all three.

The government, too, is noticing. Schemes like Skill India Digital and PMKVY 4.0 are aligning skilling with emerging tech jobs, including AI and robotics.

Conclusion

It’s easy to get caught up in the hype around NVIDIA, OpenAI, or Google’s Gemini. But remember: these models need people—lots of them—to run, test, improve, and scale. And a huge chunk of that human fuel is coming from India.

By investing in the companies training this workforce—through edtech platforms, backend service providers, or talent-supplying tech firms—you’re not just betting on AI. You’re betting on India’s core advantage: its brainpower.

And that might be the smartest AI investment of all.