Business

India’s AI market to reach $17 billion

AI Growth Trajectory

CityHilights

Bengaluru

India’s artificial intelligence (AI) market is expected to grow fast, tripling to $17 billion by 2027, according to a new report by Boston Consulting Group (BCG). The report shows India is becoming one of the world’s top AI economies.

Today, India has about 600,000 AI professionals. That number is expected to grow to 1.25 million in the next two years. India now has 16% of the world’s AI talent, second only to the United States.

BCG said that Indian companies are no longer just testing AI. They are now using it to improve business, solve problems, and grow. AI has moved beyond trials and is becoming a core business tool.

India’s strong public digital systems — like Aadhaar, UPI, and ONDC — along with rising business investments, have helped AI grow. Over 2,000 AI startups have started in just three years. Also, more than 700 million people in India use the internet, giving companies a large amount of useful data.

Mandeep Kohli of BCG said AI is now a “business necessity” and companies using it well are ahead of others. He added that managing change and building the right talent is key to success.

The report also said bold investments in AI talent, data systems, and partnerships will help Indian companies grow. AI is not just a tool — it’s the future of business. The companies that act now will lead India’s growth and compete globally in the coming years.

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