New Delhi: India's Artificial Intelligence (AI) market is expected to triple to USD 17 billion by 2027, swiftly moving beyond experimental phases to become a fundamental driver of competition and growth for Indian businesses, according to a Boston Consulting Group (BCG) research.
According to the study, AI not only improves operational efficiency, but it also expands markets, speeds decision-making, and promotes innovation-led growth.
AI is no longer an option; it is a business necessity. Indian businesses are utilizing it to vault over traditional growth trajectories and compete confidently on a global scale. Mandeep Kohli, Managing Director and Partner at BCG India, said, "While the hurdle rate for successful deployment is high, the rewards are even higher, and the results speak for themselves. "
According to BCG's report, India now has over 600,000 AI professionals, with the total expected to double to 1. 25 million. This talent pool accounts for 16% of global AI talent, trailing only the United States.
Furthermore, India's public digital infrastructure, which includes Aadhaar, UPI, and ONDC, together with rising business expenditure, has provided a favorable climate for scalable AI innovation. Key enablers include data scale, with over 700 million internet users, infrastructure expansion, and a spike in the number of AI businesses created in the last three years, with around 2,000.
The BCG research highlights how AI is making a genuine difference by showcasing the examples of four market leaders: Razorpay (Fintech), Lenskart (Consumer), Pocket FM (Media & Entertainment), and NoBroker (PropTech). These businesses are using AI to improve operations, personalise user experiences, and open up new revenue opportunities.
For example, Razorpay's AI assistants assist merchants during the onboarding process by pre-filling and validating information. Lenskart's AI-powered virtual try-ons and face mapping provide a hyper-personalized experience. Pocket FM lowered content production expenses by up to 90% and created over 100,000 hours of material using AI. NoBroker uses AI to expedite the property listing process, including image verification with Iris.
These case studies show how Indian entrepreneurs are expanding AI beyond pilot projects to revolutionize their respective industries with data-driven speed, accuracy, and growth.
The report provides a clear roadmap for businesses aiming to scale AI. BCG's 70/20/10 Framework emphasizes that 70% of success comes from people, culture, and processes, rather than just technology.
Additionally, five fundamental enablers for AI scaling include crossfunctional collaboration, a contemporary tech stack, organisational models (such as AI Centres of Excellence), workforce reskilling, and responsible AI governance. Behavioral adoption is also important, with customized training pathways, emotional curve mapping, and role-specific interventions to help consumers embrace GenAI.
