Bengaluru, often hailed as the IT capital of India, has solidified its position as the country’s leading hub for artificial intelligence (AI) talent according to the latest findings from CBRE’s Global Tech Talent Guidebook 2025. The city’s growth in AI expertise and overall tech workforce places it alongside global tech giants such as San Francisco, New York, London, Tokyo, Shanghai, and Toronto, ranking Bengaluru in the top 12 global tech powerhouse markets.

Bengaluru's AI and Tech Talent Scale

With over one million tech professionals, Bengaluru is not only the largest tech talent market in the Asia-Pacific region, but its scale rivals major US tech hubs. This surge is fueled by a robust ecosystem comprising Global Capability Centres (GCCs), premier engineering institutes, and 28 unicorn startups that contribute to an innovation-driven environment.

Between 2018 and 2023, Bengaluru experienced a 12 percent growth in tech employment, reflecting a global trend toward digital transformation and AI adoption. In 2024 alone, the city witnessed 140 venture capital (VC) deals worth $3.3 billion, with 34 focused specifically on AI — underscoring the sector's importance in investment strategies.

Workforce and Demographic Advantages

Bengaluru boasts a strong working-age population, with 75.5 percent of its residents active in the workforce. This demographic advantage is crucial for sustaining growth, as the working-age population grew by 2.4 percent between 2019 and 2024, one of the fastest rates worldwide.

This growing, skilled workforce, combined with competitive costs and quality of life improvements, has made Bengaluru an attractive destination for tech companies aiming to expand engineering and product development teams, particularly in AI.

Role of VC Investments and AI Funding

Global funding trends reinforce Bengaluru’s importance in the AI space. AI-related funding worldwide hit an unprecedented $129 billion in 2024, reflecting the technology's transformative potential. Bengaluru’s share, marked by the significant number of VC deals, signals strong investor confidence.

Expansion Beyond Bengaluru

While Bengaluru remains the focal point, other Indian cities are rapidly emerging as important tech and AI hubs:

• Delhi-NCR region recorded 183 VC deals worth $1.9 billion in 2024, including 42 AI-focused deals.

• Mumbai secured 167 deals valued at $4.9 billion, with 26 in AI, reflecting its stature as a financial and tech center.

• Ahmedabad and Jaipur are becoming cost-effective alternatives due to improving infrastructure and talent availability.

These cities benefit from factors such as better quality of life, improved education systems, and lower operating costs, driving a decentralization of tech talent and investment beyond traditional hubs.

Strategic Importance and Future Outlook

As India continues to position itself as a global leader in digital innovation and AI development, Bengaluru’s emergence as a key market highlights the country’s strategic depth. According to Anshuman Magazine, Chairman & CEO of CBRE for India and the region, the growth in Bengaluru reflects both a maturing market and the unlocking of potential across newer corridors.

The continued expansion of tech talent and AI innovation in Bengaluru and other Indian cities is expected to fuel long-term economic growth, enhance India’s global competitiveness, and attract further international investment.

In summary, Bengaluru’s rise as an AI talent powerhouse is not just a local success but a significant milestone in India’s journey toward becoming a global technology leader. Its vibrant tech ecosystem, robust workforce, and dynamic investment landscape position it at the forefront of the AI revolution both nationally and globally.

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