According to a report by Boston Consulting Group (BCG), the Indian AI market is expected to more than triple by 2027.
The report entitled “AI Leap in India: Perspectives on Emerging Challengers for BCG” shows that it states that the country will become one of the fastest growing AI economies in the world.
This growth is attributed to burgeoning enterprise technology investments, a robust digital ecosystem and a critical talent pool.
“India is no exception. Business across the sector is rapidly embracing AI to solve regional challenges, expand innovation and promote competitive advantage. AI has significantly expanded the total advertisable market (TAM) of 1.2 to 1.5 times in India's major sectors, providing unconformed efficiency and speed,” the report states.
The talented landscape is also predicted to see amazing progress.
Today, India boasts over 6,00,000 AI experts. This is expected to increase to 1.25 million by 2027. This is supported by a strong pipeline of demographic advantage and STEM education, second only to the US, with India as the world leader. Additionally, public platforms such as Aadhaar, UPI and Digilocker provide a scalable foundation for AI adoption.
With the large scale of internet use and the widespread use of smartphones, India generates a huge amount of data essential for AI model training.
“We are no longer in the realm of hype. We can see real traction, real results are emerging, serious dollars are beginning to flow. AI is not a side project. This is the next growth engine,” the report emphasized.
The impact of AI is increasingly apparent in areas such as finance, healthcare, media, retail and real estate.
Mandeep Kohli, Managing Director and Partner at BCG India, highlighted that AI has become a business need rather than an option.
“AI is no longer an option, but it's the need for business. Indian companies are using it to jump the traditional growth curve and compete confidently at the global stage. The hurdle rate for successful deployment is higher, but the results are even higher, with leaders building talent and embedding bebric rather than isolating technology.
