AI in action: India's artificial intelligence market set to triple to $17 billion by 2027; talent base, public infra power growth wave

Time of India

a day ago

India's artificial intelligence (AI) industry is poised for a threefold expansion by 2027, reaching $17 billion, as enterprises shift from pilots to scalable deployments, according to a new report by Boston Consulting Group (BCG).
The report noted that AI has evolved into a core business imperative in India, accelerating decision-making, driving innovation, and expanding market access across sectors. 'AI is no longer an option but a business necessity,' said Mandeep Kohli, Managing Director and Partner at BCG India. He added that Indian firms are using AI to bypass traditional growth stages and establish a global competitive edge, reported ANI.
India currently accounts for 16 per cent of the global AI talent pool—second only to the US—with more than 600,000 professionals. This figure is projected to double to 1.25 million. The report attributes this rapid growth to India's robust public digital infrastructure, such as Aadhaar, UPI, and ONDC, and the emergence of nearly 2,000 AI startups in the past three years.
With over 700 million internet users and rapid infrastructure expansion, India is positioned as a scalable AI innovation hub, BCG said.
by Taboola
by Taboola
Sponsored Links
Sponsored Links
Promoted Links
Promoted Links
You May Like
3BHK Transformation Possible for ₹4.5 Lakh?
HomeLane
Get Quote
Undo
The report spotlights case studies from Razorpay, Lenskart, Pocket FM and NoBroker to illustrate AI's tangible impact. For example, Razorpay's AI tools help merchants during onboarding by prefilling and validating data, while Lenskart uses AI for virtual try-ons and face mapping. Pocket FM has reduced content production costs by 90 per cent, generating over 100,000 hours of audio using AI. NoBroker applies image verification through Iris to fast-track property listings.
To scale AI successfully, BCG recommends its 70/20/10 framework—where 70 per cent of outcomes depend on people, organisation, and process, not just tech. Five key enablers are cross-functional collaboration, modern tech stacks, Centres of Excellence, reskilling initiatives, and responsible AI governance.
Behavioural change is critical, BCG adds, noting that tools like emotional curve mapping and role-based interventions can smoothen the adoption journey for GenAI tools
Stay informed with the latest
business
news, updates on
bank holidays
and
public holidays
.
AI Masterclass for Students. Upskill Young Ones Today!– Join Now