India’s AI Market Poised to Triple by 2027, Reaching $17 Billion
India's artificial intelligence (AI) market is expected to triple to a value of $17 billion by 2027, as enterprises increasingly deploy AI at scale across various industries. According to a report by Boston Consulting Group (BCG), this transformation is driven by a surge in AI talent, widespread enterprise adoption, and the strengthening of digital public infrastructure.
Rising Demand and Growing Talent Pool
AI is quickly becoming a business necessity in India, with companies leveraging AI to accelerate growth and improve global competitiveness. As highlighted by Mandeep Kohli, Managing Director and Partner at BCG India, AI is no longer an option but a crucial part of business strategies. India’s AI talent pool currently stands at 600,000 professionals, and it is set to double to 1.25 million by 2027, contributing 16% to the global AI talent base, second only to the United States. This expansion is fueled by India’s robust digital public platforms such as Aadhaar, UPI, and ONDC, which enable widespread access and innovation.
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Sectoral Growth and AI Implementation
India is seeing AI being adopted across diverse sectors including fintech, retail, proptech, and media. Over 2,000 AI startups have emerged, benefiting from a digital ecosystem with more than 700 million internet users. Notable AI applications include Razorpay’s use of AI for seamless merchant onboarding, Lenskart’s AI-powered facial mapping for virtual try-ons, and Pocket FM’s use of generative AI to reduce content production costs by 90%.
These success stories demonstrate AI's potential to improve operational efficiency, enhance customer experiences, and optimize costs, positioning India as a global leader in AI development and deployment.
Implications for India’s Future
As India’s AI ecosystem continues to mature, it is not only driving economic growth but also fostering job creation and digital empowerment. With supportive policies, ethical frameworks, and international collaboration, India’s AI future looks set to provide substantial returns and bolster its competitive position on the world stage. The AI revolution is no longer speculative but strategically underway in India.
