India’s AI Market Set to Triple to $17 Billion by 2027, Emerging as one of the fastest-growing AI economies globally: BCG Report
- India already has 600,000+ AI professionals, with the number expected to double to 1.25 million by 2027
- India accounts for 16% of the global AI talent pool, second only to the United States
- Razorpay’s AI assistants help merchants throughout the onboarding process - prefilling, validating etc.
- Lenskart uses AI-powered virtual try-ons and face-mapping to deliver a hyper-personalized experience
- Pocket FM cut content production costs by up to 90% and produced 100K+ hours of content with AI
- NoBroker leverages AI to accelerate the property listing process with image verification through Iris
Artificial Intelligence (AI) is no longer confined to pilots and proof-of-concepts—it is redefining how Indian businesses compete and scale. A new report by Boston Consulting Group (BCG), titled “India’s AI Leap: BCG Perspective on Emerging Challengers”, explores how Indian enterprises across sectors are moving from experimentation to measurable value creation. The report highlights how AI is driving not only operational efficiency, but also market expansion, faster decision-making, and innovation-led growth.
India’s AI Inflection Point: Talent, Infrastructure, and Scale:
India’s domestic AI market is backed by a thriving ecosystem of 600K+ professionals today, expected to grow to 1.25 million. Public digital infrastructure - including Aadhaar, UPI, and ONDC, combined with rising enterprise investment, has created fertile ground for scalable AI innovation. Key enablers to this include: Data Scale with over 700M internet users, Infrastructure growth, and a surge of AI Start-ups with ~2000 launched in past 3 years.
AI in Action:
The report spotlights how AI is delivering measurable impact through the lens of four market leaders—Razorpay (Fintech), Lenskart (Consumer), Pocket FM (Media & Entertainment), and NoBroker (PropTech). These companies are using AI to streamline operations, personalize user experiences, and unlock new revenue streams. From automating 80% of customer support at Razorpay to cutting content production costs by 80% at Pocket FM, and enabling smart property management at NoBroker, these case studies show how Indian innovators are moving beyond pilots to scale—transforming their industries with data-driven speed, precision, and growth.
Scaling AI: From Pilots to Business Capability:
The report outlines a clear roadmap for companies looking to scale AI:
- BCG’s 70/20/10 Framework: 70% of success comes from people, organization, and process—not just technology.
- Five Enablers: Cross-functional ways of working, modern tech stack, organizational models (e.g., AI CoEs), workforce reskilling, and responsible AI governance.
- Behavioral Adoption: Nudging users through GenAI adoption with tailored learning paths, emotional curve mapping, and role-specific interventions.
“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 organization,” said Mandeep Kohli, Managing Director and Partner, BCG India.
Call to Action: India Must Lead, Not Follow:
The report concludes with a strong message for Indian business leaders: AI is not a side project—it’s the next growth engine. Those who act boldly, invest in scalable data and talent foundations, and partner across the ecosystem will define the next decade of growth—for their companies and for India. Link to the report: https://media-publications.
