India’s AI market to triple to $17 billion with 1.25 million professionals by 2027

BENGALURU: India’s artificial intelligence (AI) market is projected to triple to $17 billion by 2027, emerging as one of the fastest-growing AI economies globally, a report showed on Wednesday.

Artificial Intelligence (AI) is no longer confined to pilots and proof-of-concepts—it is redefining how Indian businesses compete and scale. India already accounts for 16 per cent of the global AI talent pool, second only to the United States.

The report by Boston Consulting Group (BCG) explored how Indian enterprises across sectors are moving from experimentation to measurable value creation.

“India’s domestic AI market is backed by a thriving ecosystem of 600,000 professionals today, expected to grow to 1.25 million by 2027,” the findings showed.

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 700 million internet users, infrastructure growth, and a surge of AI startups with 2,000 launched in past three years.

The report also outlined a clear roadmap for companies looking to scale AI.

“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,” said Mandeep Kohli, Managing Director and Partner, BCG India.

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,” said Kohli.

"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," the report noted.