CDMO Industry Sees Substantial Increase in AI-Linked Hiring Over Past Two Years

Artificial Intelligence Skills in Demand in India's CDMO Sector

A recent report by CIEL HR has revealed a sharp shift in hiring trends in India's Contract Development and Manufacturing Organisation (CDMO) sector, with artificial intelligence (AI) skill demand jumping nearly three-fold in two years between 2023 and 2025.

According to the report, AI-linked skill demand in the CDMO sector surged to 17.2 per cent in 2025 from 6.2 per cent in 2023. The report further highlighted that AI demand remained highest in technology and digital roles at nearly 38 per cent. This trend is a reflection of the increasing importance of AI in the sector, with AI becoming central to how research is accelerated, manufacturing is optimised and client commitments are delivered.

The CIEL HR report is based on inputs from over 50 CDMO and pharma manufacturing organisations operating in India across calendar years 2023, 2024 and 2025. These companies collectively represent API manufacturing, formulations, biologics, speciality pharma, contract manufacturing and integrated development platforms. Demand intelligence was derived from more than 50 companies by analysing hiring trends across calendar years.

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The report found that overall, the CDMO sector saw a 52 per cent increase in talent demand between 2023 and 2025, indicating sustained capacity expansion and rising complexity in outsourced pharmaceutical programmes. Manufacturing and operations emerged as the largest segments, accounting for 1,820 roles in 2025. However, growth in these functions remained the slowest among all positions, at around 8 per cent year-on-year.

The report also highlighted a widening gap between demand and available talent, particularly in high-value roles. While demand for AI skills in research and development roles increased to 24 per cent, the supply of AI-skilled talent in these functions remained below 1 per cent, creating a significant execution constraint.

Geographic concentrations were also outlined, with over 60 per cent of CDMO talent clustered across fewer key states, led by Maharashtra, Gujarat and Telangana, increasing dependence on limited talent pools. Emerging hubs like Tamil Nadu, Andhra Pradesh and NCR have a lot of catch-up to do, the report stated.

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The report's findings suggest that the CDMO sector is entering a phase where competitive advantage will be the ability to integrate intelligence into every layer of operations. As the sector continues to evolve, the challenge ahead will be building depth of talent that can translate this potential into consistent outcomes at scale.