India's artificial intelligence sector is experiencing huge growth. The market will triple to reach US$17 billion by 2027. This massive expansion comes from companies adopting AI technology and a rapidly growing pool of skilled workers. India is now becoming a global AI powerhouse, second only to the United States in technology capabilities.
A new report by Boston Consulting Group shows that Indian companies are moving beyond small AI tests. They are now using AI technology across their entire businesses. This shift shows that AI has become essential for companies to survive and grow.
AI helps businesses make faster decisions and come up with new ideas. It also helps them reach more customers. "AI is no longer an option but a business necessity," said Mandeep Kohli from BCG India. Indian companies are using AI to skip traditional slow growth methods and compete with global players.
India has 16 percent of the world's AI talent pool. This means over 600,000 professionals work in AI fields. This number will double to 1.25 million people by 2027. The growth happens because India has strong digital systems like Aadhaar, UPI, and ONDC.
Nearly 2,000 AI startups have started in the past three years. India has over 700 million internet users and is building more digital infrastructure. This makes India a perfect place for AI innovation and growth.
Many Indian companies show how AI works in practice. Razorpay uses AI tools to help new merchants join their platform. The AI fills out forms automatically and checks if the information is correct. Lenskart lets customers try on glasses virtually using AI and face mapping technology.
Pocket FM has cut content production costs by 90 percent using AI. They have created over 100,000 hours of audio content with AI help. NoBroker uses AI image checking called Iris to approve property listings faster. These examples show how AI helps different types of businesses work better.
Boston Consulting Group suggests a special method for companies to use AI successfully. They call it the 70/20/10 framework. This means 70 percent of success comes from people, organization, and processes, not just technology. Companies need teamwork, modern technology, training centers, employee skill development, and responsible AI rules to succeed.
This rapid AI growth positions India as a major technology hub globally. The combination of skilled workers and strong digital infrastructure will likely attract more international investments and partnerships in coming years.