India’s AI Sector To Triple By 2027, Set To Be Among Fastest Growing Markets Globally: BCG Report

India's artificial intelligence (AI) sector is poised to more than triple in value, reaching $17 billion by 2027, according to a report by Boston Consulting Group (BCG).

The report, titled "India's AI Leap: BCG Perspective on Emerging Challengers," suggests that the country is on track to become one of the fastest-growing AI markets globally.

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This surge is credited to increasing enterprise technology investments, a robust digital infrastructure, and a substantial talent pool.

"India is no exception-businesses across sectors are rapidly embracing AI to solve local challenges, scale innovation, and drive competitive advantage.

AI is cruising towards the total addressable market (TAM) by 1.2 to 1.5 times across key Indian sectors, while delivering unmatched efficiencies and speed," the report stated.

The talent landscape is also expected to make significant strides.

At present, India is home to over 600,000 AI professionals-a figure forecasted to rise to 1.25 million by 2027.

This positions India as the second-largest AI talent hub globally, after the United States, supported by its demographic edge and a steady stream of STEM-educated graduates.

Furthermore, digital public infrastructure such as Aadhaar, UPI, and DigiLocker offers a scalable base for AI implementation.

With widespread internet access and growing smartphone use, India produces an immense volume of data, crucial for training AI systems.

"We're no longer in the realm of hype; real traction is visible, real outcomes are emerging, and serious dollars are starting to flow. AI is not a side project-it's the next growth engine," the report highlighted.

AI's influence is already being observed across sectors including finance, healthcare, media, retail, and real estate.

Mandeep Kohli, Managing Director and Partner at BCG India, emphasised that AI has shifted from being an optional tool to a strategic imperative.

"AI is no longer an option but a business necessity. Indian companies are using it to leapfrog traditional growth curves and compete confidently on the global stage. While the hurdle rate for successful deployment is high, the rewards are even higher, and the results speak for themselves. What separates the leaders is not just the tech, but how they manage change, build talent, and embed AI into the fabric of their organisation," Kohli said.

(With PTI inputs)