The Fast and the Equal: GenAI’s Race to Close the Gender Gap

The tech industry, a cornerstone of global innovation and economic growth, has long been marred by a significant gender gap. Women’s representation in the sector, particularly in leadership roles, remains alarmingly low. In India, while women constitute 36% of the nearly 5 million IT professionals, their numbers dwindle as they ascend the corporate ladder, with representation at the executive level dropping to a mere 4-8%, well below the global average of 14% in 2023. This disparity is starkly evident in the adoption of Generative AI (GenAI), a technology that is expected to dominate 33% of the global AI market, projected to reach $320-380 billion by 2027.

However, a report by NASSCOM and BCG on "GenAI: The Diversity Game Changer We Can’t Ignore" suggests that GenAI could play a pivotal role in bridging this gender gap by creating new opportunities for women in tech.

Among women who do engage with GenAI, 90% use ChatGPT, followed by Microsoft Copilot and Google Bard. Despite these advancements, the report suggests that GenAI could be a pivotal force in bridging the gender gap by creating new opportunities, enhancing accessibility, and reducing biases that have historically hindered women in tech.

The Gender Disparity in AI and the Promise of GenAI

The report reveals that in India, male professionals in AI and GenAI outnumber their female counterparts by approximately 46%, a gap that widens with experience and seniority. Despite women making up 43% of the tech workforce at entry levels, their representation in GenAI is significantly lower, standing at just 33%. This gender imbalance is more pronounced at the senior management level, where men dominate by a 63% margin.

Nevertheless, the potential of GenAI to act as an equalizer is not to be overlooked. Companies with diverse leadership teams tend to outperform their less diverse counterparts, with innovation revenues 19 percentage points higher and EBIT margins 9 percentage points greater. This correlation between diversity and business performance underscores the importance of fostering an inclusive environment in tech.

According to the report, 65% of both women and men in India believe that GenAI will help bridge the gender gap in tech. GenAI's ability to enhance accessibility, reduce biases, and create new opportunities is seen as a critical factor in this shift. Sangeeta Gupta, Senior Vice President and Chief Strategy Officer at NASSCOM, emphasized, “With GenAI set to dominate the tech industry, it is critical to address key challenges such as knowledge gaps and lack of support to empower women, particularly in these roles.”

Understanding the Realities: Adoption and Challenges in GenAI

The adoption of GenAI among women professionals in India is encouraging but not without challenges. The report highlights that 80% of mid and junior-level women are already using GenAI, with senior women close behind at 79%. However, they still trail senior men in GenAI adoption rates, particularly in India, where the gender gap in AI leadership is a staggering 64%. This is in stark contrast to their global counterparts, where senior women lead in GenAI adoption.

Women’s use of GenAI is primarily driven by the need for efficiency and innovation. According to the report, 72% of women use GenAI to improve efficiency and time management, while 51% use it to foster innovation and creativity. Despite recognizing the importance of GenAI for career growth, with 90% of women viewing it as crucial, only 35% feel fully prepared to use these tools professionally. This readiness gap is more pronounced in non-tech functions, where only 31% of women feel prepared compared to 37% in tech roles.

The barriers to adoption include limited knowledge, lack of trust, restricted access, and fear of competence scrutiny. These challenges are not just technical but also cultural, reflecting the broader issues of gender bias and inequality in the workplace. Sreyssha George, Managing Director and Partner at Boston Consulting Group, noted, “To capture the $320 billion AI market, India’s tech sector needs diversity. This will ensure effective systems by eliminating biases and incorporating varying ethical perspectives.”

Career Ambition and Extra Effort: Not the Roadblocks for Women

Contrary to some stereotypes, the survey findings highlight that women in tech are highly ambitious and willing to put in the extra effort required to succeed. Remarkably, 42% of women rated their professional ambitions as very high, compared to 35% of men. This ambition only increases with seniority, with over 50% of senior tech women rating their ambitions as very high. However, despite this drive, senior women still trail senior men by 11 percentage points in expressing higher ambition, raising important questions about the factors contributing to this disparity.

The survey also reveals that both women and men are equally willing to go the extra mile to achieve professional success in GenAI:

• Junior-level women: 95% are ready to invest extra time, tackle new projects, upskill, or take on challenging assignments, compared to 92% of men.
• Mid-management women: 96% are willing to go the extra mile, compared to 94% of men.
• Senior management: Both women and men (100%) are fully committed to putting in extra effort.

By leveraging this ambition and willingness, the potential of GenAI can be harnessed to drive significant gender diversity and close the gap in the tech industry.

Recommendations: Leveraging GenAI to Disrupt the Gender Imbalance

The report outlines several key recommendations to harness the potential of GenAI in disrupting the gender imbalance in tech. These include:

1. Reassessing Leadership Teams: Ensuring diverse voices and varying ethical perspectives are represented in teams working on GenAI.
2. Demystifying Career Pathways: Encouraging women’s participation in GenAI through mentorship programs and clear career trajectories.
3. Advocating Flexible Work Models: Enhancing learning and experimentation through flexible work arrangements, coupled with responsible and ethical AI training.
4. Building a Strong Community of Practice: Fostering an inclusive culture and diligently measuring the talent pipeline to ensure sustained progress.

The report also stresses the need to address the knowledge gaps that hinder women’s adoption of GenAI. By offering formal and informal mentorship, ethical AI training, and networking opportunities, organizations can empower women to fully leverage GenAI for career advancement.

Women’s Adoption of GenAI: A Growing Trend

The survey findings reveal that 1 in 5 women use GenAI tools almost daily, with nearly 35% of senior management women reporting daily usage. Interestingly, women in non-tech functions show a significant lead in daily usage, with 31% reporting daily use compared to 25% of women in tech roles. Moreover, women in large-scale organizations are more likely to use GenAI tools daily (35%) than their counterparts in smaller organizations (25%).

When it comes to specific tools, 90% of women reported using ChatGPT, followed by Microsoft Copilot and Google Bard. This widespread adoption of GenAI tools among women, particularly in non-tech roles and large organizations, underscores the critical need to support and further encourage their engagement with these technologies.

What's The Path Forward for Women in Tech

GenAI holds the potential to be a powerful equalizer for women in the industry. By addressing the existing barriers and nurturing an inclusive environment, businesses can not only enhance their own success but also contribute to a more equitable and dynamic tech ecosystem. The time is ripe for the tech sector to embrace diversity, not just as a moral imperative but as a strategic advantage that can drive innovation, growth, and success in the age of AI.

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